April 23, 2004

Chile May Delay Lifting Ban On Argentine Beef

Chile may not immediately lift a 7-month-old ban on Argentine beef, the newspaper Clarin reported Thursday.
 
Chile banned imports of Argentine beef shortly after its neighbor confirmed an appearance of foot-and-mouth disease last August.
 
Officials in both countries had been saying that Chile would likely lift the ban in March, after a mandatory waiting period of six months had passed since the latest outbreak of foot-and-mouth disease.
 
But Chilean officials are reportedly frustrated with Argentina because of its recent decision to reduce gas exports to Chile. As a result, Chile may decide to maintain its ban on Argentine beef.
 
"In the Agriculture Secretariat (on Wednesday), officials had serious signs indicating that Chile will further delay the reopening (of its market), presumably as a means of retaliating for the conflict over gas," Clarin reported.
 
Such a move would not be good news for Argentina's cattle ranchers.
 
As Argentina's neighbor and one of South America's strongest economies, Chile traditionally has been choice destination for local beef exporters.
 
In 1997, for example, Chile bought a record 59,787 metric tons of Argentine beef for a total value of $141 million.
 
In 2000, the last normal export year before foot-and-mouth problems began, Argentina shipped 49,430 tons of beef and related goods to Chile for a total value of about $64 million.
 
Beef exports to Chile in 2000 accounted for 10.4% of Argentina's global beef sales.