Editor: Alejandra Groba
alejandragroba@hotmail.com
Industry sources told WBR that Argentina, Brazil and Uruguay have reached a preliminary agreement on how to distribute the beef tariff-rate quota created under the EU-Mercosur agreement, which will gradually increase to 99,000 tons by the fifth year (55% chilled and 45% frozen).
According to industry reports, the three countries agreed to calculate quota shares using a formula based 50% on past export performance to the European Union and 50% on exports to the rest of the world. Discussions with Paraguay are expected in the coming days, as it remains in a weaker position after advocating for an equal distribution among the four countries (25% each).
However, sources within Uruguay’s Foreign Ministry told WBR that, for now, there has been no progress on the internal Mercosur allocation of the various quotas included in the EU trade agreement, covering beef, honey, rice, dairy products, ethanol, and other products.
Initially, Brazil reportedly favored a distribution based on past export performance to all destinations, while Argentina wanted the calculation to be based solely on exports to the European Union.
