The Brazilian Association of Meat Exporting Industries (Abiec) is negotiating with representative entities of the sector from Argentine, Uruguay and Paraguay a proposal to distribute the Mercosur beef export quota to the European Union.
According to the proposal, countries would have higher volumes in the categories where they have a greater presence. Uruguay and Argentine, for example, export more chilled meat, while Brazil and Paraguay export more frozen meat, according to Roberto Perosa, president of Abiec.
“We have a proposal to assess the production capacity and shipping history of each country to Europe. Countries like Uruguay and Argentine have greater capacity and experience in the production of chilled beef. Brazil is open to discussing the possibility of them eventually having a larger quota for chilled beef, and us for frozen beef,” Perosa told Valor. “I think this is a way to try to reach an agreement,” he added.
The proposal also includes a distribution of volumes based on percentages, but Perosa declined to give further details. “It is based on each country’s production capacity, its share of the global meat market, and the European market,” he stated.
Abiec has already held talks with industry associations in Uruguay, Argentine, and Paraguay. Last week, a representative from the organization was in Uruguay to meet with the local association, INAC. This week, Perosa is in Argentine to meet with the country’s association, ABC.
According to Abiec, once the four associations reach a consensus, the decision will be validated at the Mercosur Meat Forum (FMC), an entity that brings together representatives of the production chains of the four countries, and subsequently accepted by their respective governments.
The Free Trade Agreement between the European Union and Mercosur established a total quota of 99,000 tons of beef, of which 55% had to be chilled and 45% frozen, to be distributed among the Mercosur exporting countries. This volume will only be reached in the sixth year after the agreement comes into force.
In 2026, considered the “zero” year of implementation, the total quota would be 16,500 tons, including chilled and frozen meat, but since it came into force in May, the volume considered was proportional to 8 months, i.e., 11,000 tons.
Within the quota, the applied tariff is 7.5%. In 2027, the total quota increases to 33,000 tons; in 2028, to 49,500 tons; in 2029, to 66,000 tons; in 2030, to 82,500 tons; and in 2031, it reaches a volume of 99,000 tons.
The allocation of the quota among Brazil, Argentine, Uruguay, and Paraguay is still undefined. While Argentine and Uruguay are more receptive to Brazil’s proposals, Paraguay has been more reluctant, demanding that the volumes be divided equally among the four countries, that is, 25% for each. Despite this, Perosa stated that he believes the matter can be resolved quickly.
“The Brazilian government is negotiating, the private sector is too, and we have been informing the government of our demands. I believe that 30 to 40 days is a reasonable timeframe to reach a consensus,” Perosa stated.
