The provisional entry into force of the agreement between Mercosur and the European Union this Friday (1st) reignited an internal dispute between the bloc's countries over the division of the beef export quota to the European market. Brazilian Association of Meat Exporting Industries (Abiec) The organization argues that the distribution of the 99,000 tons per year, with a reduced tariff of 7.5%, should not be done equally among Brazil, Argentina, Paraguay, and Uruguay. According to the entity, the division should consider factors such as production capacity, regularity of supply, sanitary certification, and export history. "This is not a merely arithmetic division, but one that ensures the negotiated quota is fully utilized," it stated. AbiecIn a statement, Paraguay, which holds the bloc's temporary presidency, proposes an equal division—approximately 24,750 tons for each country. Brazil resists the proposal, alleging a risk of underutilization of the quota. According to the sector, countries with less supply capacity might not be able to fully utilize their volume, reducing the bloc's overall potential gains. In previous agreements, such as the one signed in 2004, the quota division followed proportional criteria, with Brazil concentrating 42.5% of the volume, followed by Argentina (29.5%), Uruguay (21%), and Paraguay (7%). This model, according to the sector, better reflects the relative weight of each country in exports. However, government sources indicate that, initially, there may not be a formal division of the quota. In that case, access to the European market would depend on each country's ability to secure contracts first, intensifying competition within the bloc itself.
This text was translated by machine from Brazilian Portuguese.