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Call for Acceleration of Trade Between Mercosur and EU

19 February 2013

BRAZIL - The chief executive of the Brazilian Poultry Union (UBABEF), Francisco Turra, has made ??a formal request to the Vice President of the Republic, Michel Temer, to accelerate the creation of a free trade agreement between Mercosur blocs and the European Union.

According to Mr Turra, the establishment of a FTA between the two blocs is critical to the expansion of export capacity of Brazilian agribusiness. He cited the example of the Brazilian poultry sector, which is one of the country's key markets in the European Union.

"Being forced to export into a predetermined quota regime, the European Community is set today as our third largest market by revenue, with $ 1.2 billion in foreign exchange during the year 2012. A free trade agreement would expand our export capacity for a highly sought destination, favoring not only the poultry industry but the whole of Brazil, expanding exports," he explained.

Mr Turra also emphasized that the delay in the consolidation of an agreement between the two blocs could affect crucial competitive ability of chicken meat exporters.

"Today we see that the main competitor of the Brazilian poultry sector in the international market, the United States, is about to make possible an agreement with Europe. Therefore, the establishment of free trade agreement between the European Union and Mercosur is no longer just a way to improve the export list, but to keep the Brazilian competitiveness along one of its most important customers," he said.

Also, the UBABEF president requested support from the vice-president in the opening of markets currently closed for Brazilian products.

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