BRAZIL

Meat shipments from Brazil should benefit from exemption from Mexican tariffs

The Brazilian Animal Protein Association (ABPA) celebrated the publication of a decree by the Government of Mexico, which took place yesterday, with the renewal of the package against Inflation and Scarcity (PACIC, acronym in Spanish), a program that seeks to control inflation and balance internal supply of products through the import of products.

Posted on Jan 10 ,00:10

Meat shipments from Brazil should benefit from exemption from Mexican tariffs

The renewal comes into effect tomorrow and will be valid until December 31st of next year. The measure impacts all products in the North American country's basic food basket, including chicken meat, pork, beef, turkey meat and eggs - Brazil is a supplier of all five products to the Mexican market.

To give you an idea, before the program, import tariffs on Brazilian products reached 16% for pork and up to 75% for chicken meat.

"Thanks to the excellent work of the Ministries of Agriculture and Foreign Affairs, Mexico has established itself as a traditional destination for Brazilian chicken meat and recently opened its doors to imports of eggs and pork. Despite the obstacles that have recently arisen for pork, and which we hope will soon be overcome, there are strong expectations regarding the growth of Brazil's role in supporting Mexican food security and in its fight against food inflation", assesses the president from ABPA, Ricardo Santin.

Mexico is the ninth main destination for chicken meat in Brazil. Until November, the country imported 172.5 thousand tons of the product, a volume that exceeded by 28.4% the volumes shipped in the same period of 2022. In the case of pork, the country is the tenth main destination for Brazilian products, with imports which total 28.1 thousand tons in the first eleven months of November.

"By zeroing tariffs on the import of basic food products, which include poultry meat, pork and eggs, Brazil remains on equal competitive terms with traditional suppliers to the Mexican market, such as as has already occurred throughout practically the entire year of 2023. This will certainly enable new business opportunities for both sides, especially in the supply of products such as breast and mechanically separated meat", highlighted ABPA's markets director, Luís Rua.

Eggs for Chile – At the end of last week, Brazilian egg exporters had another important news: Chilean authorities established a pre-listing agreement with the Brazilian Ministry of Agriculture and Livestock for egg imports.

Pre-listing authorizes all companies authorized by the Federal Inspection System (i.e., authorized by the Brazilian ministry) to request authorization to export their products to this destination. Previously, qualification was carried out individually, with documentary analysis by the Chilean authorities. Now, the Chilean missions will be focused on validating Brazil's inspection system.

"Chile took the lead in egg imports from Brazil throughout the second half of the year, surpassing even Japan as the largest importer of the Brazilian product. With the agreement, there is an expectation of a significant increase in the international trade of eggs from Brazil, which should represent an important increase in revenue in the Brazilian export basket", adds the president of ABPA, Ricardo Santin.

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