Brazil welcomes renewal of Mexico anti-inflation package as local exporters benefit

BRF SA

28/12/2023 14:28

By Ana Mano
       SAO PAULO, Dec 28 (Reuters) - The Brazilian ministry of
agriculture welcomed Mexico's renewal, for another year, of
measures against inflation that exempt certain food products
from import taxes, a boon to Brazilian exporters.
    The list of products benefiting from the measures include
poultry meat, pork, beef, corn, rice and eggs, the ministry
said.
    In 2023, Mexico became Brazil's fifth-biggest trading
partner, behind China, the United States, Argentina and the
European Union, according to the ministry.
    The trade boost came largely from the implementation of a
Mexican anti-inflationary package in May 2022, which facilitated
the entry of Brazilian products into the Mexican market. 
    The measures also helped Mexico surpass Chile and Paraguay
as the second main destination for Brazilian agricultural
exports in Latin America, the ministry said.
    Citing trade data between January and November 2023, the
government said Brazilian agricultural exports to Mexico reached
around $2.26 billion. 
    Brazil is currently the second-biggest supplier of poultry
meat to the Mexican market, the ministry said. Recently, it
started sending pork shipments to that country.
    Before the anti-inflation measures, import tariffs were 16%
for Brazilian pork and up to 75% for chicken meat, according to
ABPA, a Brazilian lobby representing food processors like BRF SA
 BRFS3.SA  and JBS SA  JBSS3.SA .
    With the measures, trading picked up, but the accelerated
growth of Brazilian meat imports spurred a reaction from Mexican
lobbies, which sought relief in the courts to suspend pork
imports from Brazil. 
    The agriculture ministry did not immediately reply on the
current status of the pork ban. ABPA said the ban stands.
    After the import suspension was enforced, the Brazilian
agriculture ministry said $60 million worth of Brazilian pork
products had been shipped and awaited authorization to enter
Mexico.

 (Reporting by Ana Mano; Editing by Mark Porter)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
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