January 12, 2011

Argentina calls for liberalisation of US beef market

Argentina has requested for the US to liberalise its beef and citrus markets, Argentinean foreign minister Héctor Timerman said.

Timerman emphasised the need for Argentina – a key agriculture producer – to make the most of its comparative advantage in the beef and citrus markets, which provide thousands of jobs in the South American country.

Meanwhile, Argentina is hoping that the US will soon certify its production of lemons, mandarins, and beef, as these products have hygiene certifications pending in the US. Farm subsidies in the US continue to represent a contentious issue in Latin America, especially as the commodity-rich region hopes to enter the US market.

Continuous support for US farmers on behalf of their government has undermined the possibility of liberalising the agricultural market, which remains a key area to be explored by South American exporting economies such as Argentina and Brazil.

It is hoped that with the moving forward in 2011 of the stalled Doha round of negotiations, the US and Europe will eventually remove farm subsidies and allow developing countries such as Argentina to enjoy higher crop prices.

However, it is yet to be seen whether such progress will materialise soon or if it will be postponed for further negotiations.