September 28, 2006


Brazil, EU chicken trade talks hit impasse



Brazil and the European Union failed to reach an agreement on tariffs and quotas for Brazil's chicken imports to the EU during a second round of negotiations this week, the local Estado newswire reported Wednesday (Sep 27).


Brazil exports some 500 million tonnes of chicken to EU markets each year, including processed chicken meat. The EU wants to increase tariffs for the higher value processed chicken meats. As a concession, the EU agreed to raise quotas for cheaper value whole chicken exports.


The impasse is between quota amounts and how the quotas will be administered, Ricardo Goncalves, president of the Brazilian Chicken Exporters Association (ABEF), said at a press conference last week.


An ABEF spokesperson said details of the talks would come out later in the week.


Estado reported that Brazil would take the issue to the World Trade Organization if the impasse continues.


Some 87 percent of Brazil's processed chicken exports head to the EU, up from 78 percent in 2005. According to ABEF, the EU imports less than 10 percent of what it consumes in chicken each year, leading Brazilian chicken exporter companies to say that their exports aren't hurting local industry.


Brazil is the world's leading chicken exporter and is expected to export 2.6 million tonnes of chicken in 2006, 9 percent less than 2005 volume.


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