EU-Mercosur agreement: Argentina benefits from beef exports

With the new trade agreement between the European Union and Mercosur, Argentina will have zero tariffs or reduced tax on most of their export quotas for beef.

Although the Brazilian cattle herd is four times larger than the Argentine, Argentina will have access to quotas of 50 thousand tons of beef. Brazil will have around 38.5 thousand tons, Uruguay 20.4 thousand tons, and Paraguay 5.7 thousand tons.

The advantage of quota that Argentina will have with the agreement between EU and Mercosur is a heritage of the Hilton quota, valid for noble courts. With the deal, this quota, which already has lower import tariffs, will have the aliquot zeroed.

Currently, the Hilton quota has a tariff of 20% and, in Mercosur, Argentina has its most significant volume: 30 thousand tons per year. For Brazilians, the limit is 10 thousand tons, but the national industries can hardly fulfill it due to the restrictions from the health protocol with the European Union. In the last fiscal year, ended in June, Brazilian slaughterhouses occupied 41% of the Hilton quota.

To get an idea of the Argentine beef export volume to the European Union as well as to the rest of the world in the period from January 2015 to May 2019, follow the chart below, based on data from Dataliner:

Source: Valor

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