November 17, 2010

US drops Brazil pork import ban

The US has dropped pork import restrictions from a Brazilian state, complying with one of the requirements of a broader agreement to resolve a dispute over cotton subsidies.

"We now hope to ship around 10,000 metric tonnes of hog meat to the US in 2011 and about 40,000 tonnes in four years time," said Pedro de Camargo Neto, president of Brazil's pork exporters association, (Abipecs) Tuesday (Nov 16).

He said the USDA published the document recognising that Santa Catarina state in the south of the country is FMD-free.

Brazil is the world's third major pork exporter and Santa Catarina state is the country's main pig-producing state. The World Animal Health Organization had declared the state's pork supply FMD-free in 2007, but the US restrictions persisted.

In June, the US agreed to allow the pork imports as part of its broader agreement with Brazil to resolve a dispute over US cotton subsidies, which the World Trade Organization had determined were unfair.

In February, the WTO ruled that Brazil could apply up to US$800 million in annual retaliatory tariff and intellectual-property sanctions, but the two countries struck a deal in June, under which the US promised to pay US$147 million a year to Brazil to help finance its cotton growers.

"This is good news because a refusal to allow pork imports [into the US] would be against the promise to speed up animal health approvals. It's good for trade in general," Camargo said.

Carmago said the green light from the US to allow pork imports, may also sway Mexico to do the same. "We hope to get Mexico's approval for [pork] imports because they often follow the US," he said.

This year, Brazil is likely to export around 540,000 tonnes of pork compared with 600,000 tonnes last year. The export market has contracted this year due to the strength of the Brazilian domestic market.