The Brazilian agricultural sector believes that the free trade agreement between Mercosur and the European Union could benefit sectors outside the traditional export agenda and also insert small and medium farmers in the international market.

"In addition to the more traditional sectors, such as beef, the agreement will bring gains for various agribusiness activities that are outside the usual export agenda, such as specialty coffees, honey, and fish," says the Confederation of Agriculture's coordinator of international relations, and Livestock of Brazil (CNA), Camila Sande.

The trade opening between the two economic blocks provides for the elimination of tariffs or the expansion of access to agricultural products through quotas. Segments that will have zero tariffs roasted and soluble coffee, manufactured and non-manufactured smoke, fish, shellfish and vegetable oils.

Camila says that, in general terms, the agreement was well received by the sector and can open space for export of small and medium farmers." There have been more gains than losses and the segments that consider themselves most affected will have to look for measures to increase their competitiveness and market presence. The deal will bring a quality increase." 

One sector that expresses concern about trade openness is the dairy sector. Brazilian producers fear to lose competitiveness by removing tariffs on cheese and milk powder from Europe. "We have to do some internal cleaning and find public policies to make them competitive," said Agriculture Minister Tereza Cristina after the deal was announced. 

One measure under consideration by the government is the exemption of tariffs on machine imports by dairy farmers. the creation of a wine sector modernization fund is also under study. 

The information is from the Diário do Comércio, indústrias e Serviços. 

Source: www.milkpoint.com.br