U.S. authorities have announced the reinstatement of equivalence of sanitary measures for beef, a necessary condition to resume sales of Argentine beef production. Argentina will have a 20,000-tonne annual limit on its exports.
Today, the Animal and Plant Health Inspection Service (APHIS) of the U.S. Department of Agriculture (USDA) informed the Argentine Secretariat of Agro-Industry, through the National Service of Agri-food Health and Quality (SENASA), of the reinstatement of equivalence of sanitary measures between both countries. This reinstatement means that measures undertaken by Argentina to control food safety for beef achieve the FSIS's appropriate level of public health protection as applied domestically in the United States, providing Argentine and American consumers with the same level of protection.
The reopening of the U.S. beef market is the result of joint work between the Secretariat of Agro-Industry, the Ministry of Production and Labour, the Argentine Foreign Ministry, the Argentine Embassy to the United States headed by Fernando Oris de Roa, and SENASA, among other organizations, which through this milestone contribute to the strengthening of trade relations between the United States and President Macri's Government.
Foreign Minister Faurie highlighted "the importance of this decision for the Argentine agricultural sector since it offers new trade opportunities for producers and exporters. Moreover, this signals the success of the smart insertion policy pursued by President Macri in order to boost Argentina's growth and development."
The Minister of Production and Labour, Dante Sica, stated that "the result of this negotiation reaffirms the importance of making progress towards the access of other Argentine products to markets around the world, as well as strengthening existing trade flows with the United States." He noted that "exports are the best way to grow and create jobs, and this decision allows Argentina to reach the United States through to the quality of our production and the value of our work."
The result of this negotiation reaffirms the importance of strengthening existing trade flows. In this regard, the Secretary of Agro-Industry, Luis Miguel Etchevehere, underscored "the importance of both countries as global food suppliers which offer opportunities to pursue a busy strategic agenda, not only on trade issues but also on investments and technical cooperation."
The Secretary for International Economic Relations, Horacio Reyser, stressed "the importance of this significant achievement as a result of a continuous, efficient and coordinated work by several Government departments."
Argentina will be able to export a maximum of 20,000 tonnes per year which would amount to USD 150 to 180 million. Exports exceeding this limit will be subject to a 26.4% tariff.
It is estimated that 80% of total exports will be lean meat, which U.S. industry demands for the production of burgers and American producers do not supply in sufficient quantities. The remaining 20% will be "Premium" quality meat cuts with special characteristics. The United States authorizes imports of Argentine boneless carcass cuts, with the exception of head meat, trotters and offal.
The United States is a suitable market for exports that allow to take better advantage of the carcass and cover a wide range of sectors including meat for industrial transformation and high-quality cuts.
BACKGROUND
On 2 July 2015, APHIS/USDA authorized the access of Argentine fresh beef exports, which had been prohibited for 14 years by the United States due to foot-and-mouth disease. Argentina has been internationally recognized as FMD-free since 2007. However, the access of Argentine exports was not allowed until the equivalence determination became official today.
The United States is the main food importer worldwide, with purchases agro-industrial products amounting to over USD 160 billion in 2017, and its attractive market represents an important opportunity for Argentine exports. It is also the leading beef importer worldwide, with purchases of USD 4.3 billion and 1 million tonnes in 2017.
The main global food suppliers are Canada, Australia, New Zealand and Mexico, including cooled and frozen meat among their products. Canada and Mexico are the top cooled meat suppliers, while New Zealand and Australia stand out in the supply of frozen meat.
Press Release No. 473/18