Brazil negotiates quota in Türkiye with 0 percent tariff
Initially, Brazil will have to agree to the establishment of a reduced quota of between 4,000 and 5,000 tons with zero tariffs and the requirement to present sanitary tests for the cargo.
The strategy is to open the doors and then expand its presence in Turkey, where meat prices have skyrocketed. The price of beef in Turkey has increased by 200% and led local consumers to reduce their purchase of the product by 30%, prioritizing the demand for chicken.
In the most recent negotiations, technical and sanitary terms were agreed upon to make exports viable. The requirement is that chilled or frozen meat must be tested for BSE, the "mad cow disease," even though the World Organization for Animal Health (WHO) considers Brazil to be a country with "negligible risk" of contracting the disease.
The Brazilian authorities decided to accept the request as a strategy to open the market and then seek expansion. The first request had been for a quota of 10,000 tons, which ended up being reduced by half.
The Brazilian private sector estimates the potential for shipments of up to 300 thousand tons per year to Turkey in a consolidated market. The Turkish tariff rate for beef is 225%.
Sources in the export sector say that a tariff of up to 20% would be acceptable for negotiations. The analysis is that, with the current price of meat in the Turkish market, this rate would still make the Brazilian product competitive in the country. There are negotiations to bring the rate to around 12%.
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