Brazil may open WTO panel against EU over poultry tariffs
Producers preparing to escalate pressure should negotiations fail
Brazil could be about to request the opening of a World Trade Organization (WTO) panel against the European Union (EU).
Francisco Turra, president of the Brazilian poultry association (Ubabef), has said that, if negotiations to remove protectionist measures adopted by the EU against Brazilian exports fail, then the industry will have to approach the WTO.
Brazil is currently able to export 350,000 tons of poultry to the EU at a reduced tariff rate; anything above this is charged an additional tariff, bringing the price for Brazilian exports close to that for locally-produced fresh chicken.
Ubabef is calling for a new rate to be established that falls between the higher and lower rates.
* Figures released for the first half of 2010 show that the total volume of Brazil’s poultry exports fell by 2%. There was also a change in the mix of exports with processed chicken exports falling by 27.5%, and cuts by 5.5%. The share of whole birds, which have lower added value, accounted for 40% of total exports over the period.