China Expected to Create Quota for Brazilian Beef Imports, Sources Say

China signaled during a bilateral meeting on Monday (Dec. 29) with Brazilian government representatives that it is expected to introduce a 55% tariff on beef imports, along with tariff-free import quotas, according to two sources familiar with the discussions.

According to the Chinese government’s indication, Brazil would receive the largest beef import quota, totaling 1.1 million tonnes per year.

The second-largest quota would be granted to Argentina, at 510,000 tonnes. Quotas are also expected to be created for Uruguayan beef (320,000 tonnes), Australian beef (200,000 tonnes), New Zealand beef (200,000 tonnes), and U.S. beef (160,000 tonnes).

Brazil’s Parliamentary Agricultural Front (FPA) will assess whether to pressure the government to apply the Economic Reciprocity Law if it considers the extra-quota tariff to be too high or the quota level to be too low, according to sources cited by Valor. One possibility under discussion is imposing restrictions on imports of Chinese electric vehicles.

China is expected to officially announce the details on Wednesday (Dec. 31).

Contacted by the press, the Brazilian Beef Exporters Association (ABIEC) said it is awaiting China’s official announcement before taking a position.

Source: Globo Rural

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