Brazil Ponders Complaint Against EU Rules on Meat

12/20/2013 - 09h42

The Brazilian government is considering action against the European Union at the World Trade Organization (WTO).

Folha has learnt that cases against European trade restrictions on beef, wood and chemical imports are "in the pipeline".

Officially the wheels are already in motion, but the government has been dragging its heels, fearing a negative European reaction. The current aim is to accelerate the request for "consultations", the first step in WTO procedures.

The action is a reaction against European complaints about perceived protectionist measures taken by Brazil, aimed at benefiting national industries, particularly the automotive sector.

The EU says that Brazil adopted "tax exemptions or reductions" in order to promote national products over imports. In particular, the EU has complained about trade restrictions on imported cars, computers, smartphones and semiconductors.

For their part, Brazilian beef producers are unhappy with a quota offered by Europe for the purchase of high quality beef, known as "the Hilton quota." They argue that European criteria are more stringent in dealings with Brazil than with other countries.

"We want to open a case at the WTO and we are consolidating the sector's position," said Antonio Jorge Camardelli, president of Abiec (an umbrella organization of meat producers).

The organization will decide whether or not the process will go ahead at a meeting in January.

In the view of the Brazilian government, the EU filed the initial complaint in order 'to cloud' bilateral relations, frustrated at its lack of progress in free trade negotiations with Mercosul.

Trade links with the EU are seen as a priority by the Rousseff administration. The government fears that Brazil may become isolated by major agreements currently under negotiation between the United States, Europe and Asian countries.

Folha has learnt from European sources that the decision to begin the current dispute with Brazil occurred as the result of "a large number of unanswered questions." They affirmed, however, that it is 'totally independent' of the Mercosul negotiations.

In the Brazilian private sector, the perception is that the EU is unhappy with trade restrictions imposed by Brazil and Argentina on the automotive sector.

Last week, the Argentine government indicated to manufacturers that it will reduce car imports by 27.5% in 2014.

Translated by TOM GATEHOUSE

Read the article in the original language

	Márcio Mingardo/Divulgação Assocon
	Brazilian beef producers are unhappy with a quota offered by Europe for the purchase of high quality beef