October 30, 2006

 

EU reaches agreement with Brazil on poultry imports

 

 

The European Union Friday (Oct 27) said it had reached a deal with Brazil on poultry imports.

 

The new deal caps salted poultry imports to the EU at 264,245 tonnes with a 170,807 tonne limit for Brazil. Up to this limit, the EU will charge a fee of 15.4 percent of the value of the imports. Above this ceiling, the EU will charge EUR1,300 a tonne.

 

The deal also limits turkey imports to 103,896 tonnes, with a limit of 92,300 tonnes allowed from Brazil. Below these ceilings, the EU will charge a fee of 8.5 percent of the value. For imports exceeding these limits, the EU will charge EUR1,024 a tonne.

 

The agreement also limits cooked chicken meat imports to 230,453 tonnes, with a 73,000 tonne limit for Brazil. The EU will charge a 10.9 percent of value fee for imports under these limits, and will charge imports exceeding these limits with a fee of EUR1,024 a tonne.

 

Brazilian access to the EU for its booming agricultural and meat exports has been a major stumbling block on the way to a global trade agreement. The EU has insisted on keeping limits on cheap Brazilian goods in order to protect its own farmers and has insisted on access to Brazil's market for its manufacturing and service exports.

 

The new limits expand Europe's net imports of poultry from abroad and allow Brazil to export more poultry to Europe than has been the case so far.

 

Poultry imports into the EU have been a political hot potato, souring trade relations between Brussels and Sao Paolo for years. Europe's decision to relent and allow greater imports follows a ruling by the

World Trade Organization that stated Europe was illegally blocking foreign chicken from entering the 25-member bloc.

 

The move is likely to improve political relations with Sao Paolo, EU officials said Friday. Brazil's wish to sell chicken to Europe, and Europe's resistance to that, has been a major stumbling block in trade negotiations for a trade agreement between Europe and the Mercosur bloc, which is headed by Brazil and Argentina.

 

"I am very pleased with the outcome of these negotiations, which ensures that our interests are safeguarded while at the same time successfully completing the necessary changes to our bound duties for poultry meat in accordance with WTO rules," said EU Agriculture Commissioner Mariann Fischer Boel.

 

Thailand, which is also a major poultry exporter, is also set to have its export limits to the EU expanded in the future, an EU official said.

 

Brazilian trade officials in Sao Paolo said they were still studying the new limits.