Brazil’s quota of chicken meat exports to UK set to increase by 19.3%

Brazil will gain a 19.3% larger quota of chicken meat exports to the UK in accordance with the bilateral agreement signed on Nov 17 at the World Trade Organization (WTO), informed the Valor press agency. Quotas allow exporters to sell their products at lower tariffs up to a predetermined amount.

The agreement between Brasilia and London on new quota distributions was reached after four years of negotiations to address better the reality of the United Kingdom not being part of the European Union (Brexit).

As for chicken meat, Brazil’s new quota in the British market will go from 79.92 thousand tonnes to 95.37 thousand tonnes, an increase of 15.46 thousand tonnes. In turn, Brazil’s chicken meat quota in the EU, now with  27 countries, was reduced proportionally to 244.2 thousand tonnes.

According to sources, Brazilian chicken meat and sugar producers were the most active in these talks to obtain the recognition that the trade flow is growing and gain a larger share of the quota in the United Kingdom.

See below the track record of Brazilian exports of poultry meat (hs 0207) to the UK between Jan 2019 and Sep 2022, according to DataLiner.

Poultry meat exports to the UK | Jan 2019 – Sep 2022 | TEUs

Source: DataLiner (click here to request a demo)

Sugar

The sugar quota to the UK increased to 46.5 thousand tonnes, while it decreased in the EU by the same proportion to  341.5 thousand tonnes.

The negotiations with the UK revolved around volumes; the existing tariffs were kept the same. There area varying rates for imports of frozen and salted chicken meat into the British market. On specific cuts of salted meat, the in-quota tariff is 15.4% while the volume in excess engenders a fee of GBP 1080 per tonne.

During the Brazilian talks with the EU, the bloc agreed to continue advancing the tarrif reduction agenda. The UK did not do the same. A quota for raw sugar has an import tariff of 82 pounds per tonne, while imports outside the quota entail the collection of 280 pounds/tonne.

Implementation

According to the Brazilian Ministry of Foreign Affairs, Brazil expects the recently agreed-upon regulations to be implemented as soon as possible by the other parties, so that Brazilian exporters can benefit from them in the second half of 2023, when the regular “quota year” for most tariff quotas begins.

According to a recent Apex analysis, the UK offers a number of erga omnes quotas (destined for all countries) that can benefit Brazilian exporters, including quotas for juices, food preparations, corn, and some fruits, among other products.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/agronegocios/noticia/2022/11/18/brasil-tera-cota-193percent-maior-para-exportacoes-de-carne-de-frango-para-o-reino-unido.ghtml

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