Brazil is encouraged by the increase in the UK’s quota for chicken meat and sugar
It is predicted that Brazil will receive a 19.3% higher quota for the export of chicken meat to Great Britain in accordance with the bilateral agreement signed on November 17 last year at the World Trade Organization (WTO), according to the Valor financial press agency.
Quotas allow exporters to sell their products at lower tariffs up to a predetermined amount.
The agreement between Brazil and London to allocate new quotas was reached after four years of negotiations to better accommodate the reality that the United Kingdom is not part of the European Union (Brexit).
As for chicken meat, Brazil’s new quota on the British market will increase from 79.92 thousand tons to 95.37 thousand tons, an increase of 15.46 thousand tons. In turn, Brazil’s quota for chicken meat in the EU, which now includes 27 countries, was proportionally reduced to 244.2 thousand tons.
According to sources, Brazilian chicken and sugar producers have been the most active in these negotiations to gain recognition that the trade flow is growing and to get a bigger share of the quota in the United Kingdom.
In fact, the sugar quota for Great Britain increased to 46.5 thousand tons, and in the EU it decreased in the same proportion to 341.5 thousand tons.
Negotiations with Britain revolved around volumes; existing tariffs were maintained. There are different import tariffs for frozen and salted chicken into the UK market. Individual cuts of salted meat are subject to an in-quota tariff of 15.4%, while the overspend levy is levied at £1,080 per tonne.
During Brazil’s negotiations with the EU, the bloc agreed to continue promoting the tariff reduction program. Britain did not do the same. Quota raw sugar has an import tariff of £82 per tonne, while out-of-quota imports are charged at £280 per tonne.
According to Brazil’s Foreign Ministry, Brazil expects the newly agreed rules to be implemented by other parties as soon as possible so that Brazilian exporters can take advantage of them in the second half of 2023, when the normal “quota year” begins. “for most tariff quotas is removed.
According to a recent Apex analysis, the UK offers a number of erga omnes (applicable to all countries) quotas that could benefit Brazilian exporters, including quotas for juices, foodstuffs, maize and some fruits, among other products.
https://en.mercopress.com/2022/11/22/brazil-encouraged-with-uk-larger-quota-for-chicken-meat-and-sugar?utm_source=feed&utm_medium=rss&utm_content=agriculture&utm_campaign=rss Brazil encouraged by UK quota increase for chicken, sugar – MercoPress