EU and Brazil agree on new trade rules

The agreement modifies the current bound tariff rate concessions for these three items, preempting the creation of three new tariff rate quotas.

“I am very pleased with the outcome of these negotiations, which ensures that our interests are safeguarded while at the same time successfully completing the necessary changes to our bound duties for poultry meat in accordance with WTO rules,” said Mariann Fischer Boel, EU Commissioner for Agriculture and Rural Development.

For salted poultry meat, currently subject to a bound tariff rate of 15.4% with no volume restrictions, the new concession will provide for a total ceiling of 264,245 tons imported at the same bound rate of 15.4% ad valorem. For greater quantities, the out-of-quota rate will be €1,300/ton. The allocation for Brazil will be 170,807 tons.

With regard to preparations of turkey meat, at present subject to a bound rate of 8.5% with no restrictions on imported quantities, the new schedule will provide for a ceiling of 103,896 tons imported under the same current bound rate of 8.5% ad valorem. The out-of-quota rate will be €1,024/ton. The quantity allocated to Brazil will be 92,300 tons.

For the third product, cooked chicken meat, currently subject to a bound tariff rate of 10.9%, the concession will provide for a total tariff quota of 230,453 tons imported under the same tariff of 10.9% ad valorem. The out-of-quota rate will be €1,024/ton. The volume attributed to Brazil will be 73,000 tons.

The EC notified to the WTO on 15 June 2006 its intention to modify the concessions contained in the EC Schedule for three poultry lines.

The Commission conducted negotiations with WTO Members having negotiating rights: Brazil, for salted poultry meat, turkey meat and cooked chicken meat and Thailand, for salted poultry meat and cooked chicken meat. Negotiations with Thailand are not yet concluded.

When the issue was first raised, Brazil complained that the EU proposal was protectionist.
Meanwhile, Thailand has been busy trying to convince the EU to soften its proposed import quotas. Thai farmers have also protested against the proposal.