(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
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conclusion that Brazil, with this Secretary <strong>of</strong> State, will most likely act more radically<br />
in <strong>the</strong>ir law-suits concerning trade disputes in <strong>the</strong> area <strong>of</strong> poultry at <strong>the</strong> WTO arbitration<br />
court. 23<br />
One <strong>of</strong> <strong>the</strong> pending suits, raised by <strong>the</strong> Brazilian “Câmara de Comércio Exterior”<br />
(Camex) at <strong>the</strong> WTO on September 5th, concerns <strong>the</strong> increase in customs for Brazilian<br />
salted-poultry exports to <strong>the</strong> <strong>EU</strong> from 15 to 75 percent.” Originally <strong>the</strong> European<br />
tariff for salted poultry from Brazil was lowered to 15 percent, as opposed to <strong>the</strong><br />
higher tariff for frozen poultry. This led Brazilian exporters to rapidly salten <strong>the</strong>ir products<br />
in order to claim <strong>the</strong> lower tariff. 24 The <strong>EU</strong> responded with a counter-measure <strong>of</strong><br />
increasing <strong>the</strong> tariffs to <strong>the</strong> level <strong>of</strong> frozen poultry.<br />
It is currently unclear what will happen since <strong>the</strong> “failure” <strong>of</strong> Cancún to <strong>the</strong> peace<br />
clause for agricultural disputes within <strong>the</strong> WTO, which expires in 2004: A wave <strong>of</strong><br />
lawsuits due to <strong>the</strong> broad agricultural export subsidies <strong>of</strong> <strong>the</strong> “North” cannot be<br />
ruled out, <strong>and</strong> <strong>the</strong>ir possible consequences for <strong>the</strong> negotiation process are hard to<br />
foresee.<br />
Apart from being <strong>the</strong> world’s largest exporter <strong>of</strong> poultry, Brazil is also <strong>the</strong> world’s<br />
number one soya exporter: According to <strong>the</strong> estimates <strong>of</strong> Gazeta Mercantil, <strong>the</strong><br />
2003-2004 soya harvest produced 57 million tons, which would mean that Brazil<br />
would outstrip <strong>the</strong> U.S. as <strong>the</strong> world’s largest soya producer. 25 Brazil’s main trade<br />
partners are <strong>the</strong> states <strong>of</strong> <strong>the</strong> <strong>EU</strong>, which in November 2003 made up 33% <strong>of</strong> Brazil’s<br />
foreign trade. 26 – And soya <strong>and</strong> meat alongside with corn are those agricultural products<br />
that are <strong>of</strong> utmost importance in <strong>the</strong> negotiation process, not only with respect<br />
to <strong>the</strong> strategic economic interests, but also in view <strong>of</strong> <strong>the</strong> potential impact <strong>of</strong> a future<br />
23 “Os europeus temem uma posição futura mais radical do Brasil junto à OMC na questão das duas queixas<br />
relacionadas com frangos, porque, segundo fontes comunitárias, a UE “não pode desconsiderar que faz parte do<br />
governo atual um gr<strong>and</strong>e empresário do setor”, referindo-se a Furlan, um dos sócios da Sadia”, http://an.uol.com.br/<br />
2003/jan/28/0eco.htm Own translation: “The Europeans fear a more radical position <strong>of</strong> Brazil toge<strong>the</strong>r with <strong>the</strong> WTO<br />
in <strong>the</strong> future, regarding <strong>the</strong> issue <strong>of</strong> <strong>the</strong> two complaints related to chicken, because, according to sources <strong>of</strong> <strong>the</strong><br />
<strong>EU</strong>, <strong>the</strong> <strong>EU</strong> “cannot neglect that a big businessman <strong>of</strong> <strong>the</strong> sector forms part <strong>of</strong> <strong>the</strong> current government,” referring<br />
to Furlan, one <strong>of</strong> <strong>the</strong> two associates <strong>of</strong> Sadia.”<br />
24 Agência Brasil, September 5, 2003: “Brasil recorre à OMC contra sobretaxa da UE ao frango. A Câmara de<br />
Comércio Exterior (Camex) decidiu hoje pedir a abertura de um painel na Organização Mundial do Comércio<br />
(OMC) contra a União Européia (UE) para questionar a sobretaxa aplicada ao frango salgado produzido no Brasil.<br />
Tanto o governo quanto os exportadores brasileiros discordam da atitude da UE de aumentar de 15% para 75% a<br />
taxa cobrada sobre todo frango congelado salgado vendido ao mercado europeu. Anteriormente, a nomenclatura<br />
comercial européia admitia uma taxa de 15% para todo o frango salgado exportado pelo Brasil. Percebendo<br />
isto, os exportadores brasileiros de frango passaram a adicionar sal na ave.” Own translation: “Brazil resorts to<br />
<strong>the</strong> WTO against <strong>the</strong> <strong>EU</strong> import-tariffs on poultry. The Foreign Trade Chamber (Camex) decided today to ask for<br />
<strong>the</strong> opening <strong>of</strong> a panel at <strong>the</strong> WTO against <strong>the</strong> European Union, to question <strong>the</strong> import-tariffs imposed on salted<br />
chicken produced in Brazil. The government <strong>and</strong> <strong>the</strong> exporters disagree with <strong>the</strong> attidtude <strong>of</strong> <strong>the</strong> <strong>EU</strong> to augment<br />
from 15% to 75% <strong>the</strong> import-tariff imposed on all frozen salted chicken sold to <strong>the</strong> European market. Before <strong>the</strong><br />
European commercial legislation admitted a tariff <strong>of</strong> 15% on all salted poultry exported by Brazil. Confronted with<br />
this situation, <strong>the</strong> Brazilian exporters had passed to add salt to <strong>the</strong>ir poultry.”<br />
25 Gazeta Mercantil, October 13, 2003, <strong>and</strong> Gazeta Mercantil, November 11, 2003.<br />
26 Gazeta Mercantil, December 9, 2003.<br />
17