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SAO PAULO, July 5 (Reuters) – A barter accord amid the European Union and South America’s Mercosur affiliation of countries could facilitate added agreements and accessible up new markets for Brazil’s massive beef-packing industry, a barter accumulation said.
Speaking one anniversary afterwards Brussels and Brasília appear an acceding to abate barriers on automated and acreage products, Antônio Camardelli, arch of Brazil’s Abiec beef association, said the accord could pave the way to negotiating admission to new markets or accretion barter with absolute partners.
“A accord of this consequence is like an allurement agenda for speaking with added countries and barter blocs,” Camardelli told Reuters in an account backward on Thursday.
He mentioned Indonesia and Thailand as -to-be new markets for Brazil, the world’s better beef exporter with sales of about $7 billion aftermost year.
Though Europe is not Brazil’s better buyer, it is the country’s best-paying chump for some prime beef cuts, Camardelli said.
Camardelli said the accord boosts the affairs for added Brazilian beef sales to the EU, as it commands a 42.5% allotment of the new 99,000-tonne anniversary allocation for beef exports to EU affiliate countries that will be assigned to Mercosur. Tax on the new allocation will be 7.5%.
The anniversary allocation is for Argentina, Uruguay and Paraguay as able-bodied as Brazil.
The new barter terms, already implemented, would additionally abate to aught from 20% a burden on beef imports into the EU beneath the alleged Hilton quota. That allocation allows Brazil and Argentina to anniversary consign up to 10,000 tonnes of beef, and 29,500 tonnes of prime beef cuts, to the EU per year.
With the barring of the Hilton terms, the EU-Mercosur accord does not change any added EU tariffs, Camardelli said, apropos to the levies alignment from 12.8% to 20% that Brazil pays to advertise beef into the EU beneath added absolute quotas still in place.
But Camardelli expects the accord will additionally acquiesce Brazilian sales of lower-value cuts to the EU, which ahead college tariffs discouraged. Such cuts could be bought mostly by EU aliment processors, he said.
Brazil’s boilerplate beef exports into the EU over the accomplished 10 years totaled 120,000 tonnes per year, according to government abstracts aggregate by Abiec.
On Friday, Abiec common all-embracing beef exports are accepted to acceleration by 10% both in aggregate and in banking agreement in 2019. (Reporting by Ana Mano Editing by Tom Brown)
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