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USDA International Egg and Poultry

03 July 2013

USDA International Egg and Poultry: ArgentinaUSDA International Egg and Poultry: Argentina

On June 27, 2013 representatives from the Brazilian Poultry Union (UBABEF), the Latin American Poultry Association (ALA), and the Center for Business Poultry Processors (CEPA) of Argentina met in Buenos Aires, Argentina.
USDA International Egg and Poultry

The representatives discussed avian influenza prevention measures and other poultry health issues, the opening of Mexico’s market to imports of poultry meat, increased exports from Brazil and Argentina, and the establishment of bilateral agreements to expand international trade, as well as various other trade issues. Another meeting is scheduled for July 2013.

The week of June 3, 2013 a delegation from Mexico’s National Health Service, Safety, and Food Quality Agency (SENASICA) met with Argentina’s National Health Service and Food Quality Agency (SENASA) to tour and audit various poultry and broiler production facilities and slaughterhouses. Following the inspections the groups discussed Argentina’s system of traceability for raw material throughout the production process, which is an issue Argentina will have to sort out before entering into a trade relationship with Mexico.

Another issue discussed is the ongoing struggle between SAPA (South African Poultry Association), Mercosur, CEPA, and UBABEF. Recently, Cepa sent a letter to the International Trade Administration Commission (ITAC) stating discrimination and unfair treatment of Sapa’s application for a tariff increase to ITAC by including Argentina, Brazil, and Uruguay. The letter seeks access to the investigation and suggests the application would devalue the Mercosur-SACU free trade agreement from December 2000, as well as the preferential trade agreement from April 2005. June 12, 2013 ITAC announced it would do a more detailed analysis of the situation and the information relating to production and financial situation of the local industry.

The dispute stems from an application sent by SAPA to ITAC in March 2013 seeking increases for up to the maximum bound rate of 82% from the current 27%, negotiated at the World Trade Organization (WTO) in order to protect its local industry from lower priced imports. According to reports, South Africa is Argentina’s 3rd largest export market or 3% of South Africa’s total broiler imports. Sapa’s request for tariff increases is WTO compliant as long as the tariffs remain between the applied rate and the negotiated bound rate of 82%. Applied rates range between 5% for boneless cuts and 27% for whole birds, carcasses, and offal. SACU (Southern African Customs Union) includes Botswana, Lesotho, Namibia, South Africa, and Swaziland. Mercosur includes member states Argentina, Brazil, Paraguay, Uruguay, and Venezuela, as well as associate members Bolivia, Chile, Colombia, Ecuador, and Peru.

According to reports, Argentina is currently 9th in worldwide poultry meat production and is projected to become the 4th largest producer in a few years. Poultry meat production is estimated to be 2 million metric tons (MMT) in 2013. Presently, Argentina is the 6th largest poultry meat exporter worldwide selling to over 60 countries and is forecast to export 315,000 MT in 2013.

Source: USDA FAS/Rabobank/Senasa/Various News Wires

Total Mercosur Broiler Meat Exports by Member Country and Volume in thousand Metric Tons (TMT)
Note: All data is January-December except for 2013*, which only includes exports from January-March 2013 for Argentina, Paraguay, and Uruguay with Brazil January-April 2013.
Source: AliceWeb Mercosul

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