September 4, 2006

Brazil protests EU quotas on poultry imports

Proposed EU measures to impose export quotas for salted chicken breast, processed chicken and turkey has drawn flak from Brazilian poultry meat exporters.

Exporters levelled criticism at the EU, saying the quota were protectionist measures which would block the growth of exports.

Exporters also warned the measure could well complicate negotiations between the European Union and Mercosul, as the Europeans have shown a lack of willingness to open up their agribusiness market.

The EU has already been ordered by the WTO to remove a special tariff on Brazilian chicken this year, the Brazilian export organisation Associação Brasileira dos Produtores e Exportadores de Frangos (ABEF) noted.

Now the EU intends to appeal the ruling to impose the said quotas.

Exports that exceed the quota would be subjected to a tariff of EUR 1,024 a tonne in the case of processed meats and EUR 1,300 a tonne for salted breast meat. According to the ABEF, the EU imports close to 90 percent of all Brazil's processed poultry exports.

The EU has imposed similar quota on Thailand, another major poultry exporter to the EU. Thailand is currently hoping to negotiate a quota limit of 140,000 tonnes with the EU. It currently exports about 100,000 tonnes a year.