Mexico will allow beef imports from Argentina

Mexico reported that it will allow imports of beef from Argentina with new regulations on health and safety.

Argentina depends on its domestic supply for practically all agricultural and livestock products, and is a major exporter of primary products, including cereals, grains, meat, and fish.

«Both countries agreed to advance in the opening of the Mexican market to Argentine beef meat products, in the same health and safety terms with which it is currently open to meat of Uruguayan origin,» said the Ministry of Economy in a press release issued this Thursday.

On October 1, 2020, the Government of Argentina announced a series of economic measures for the industrial, mining, agricultural and construction sectors with the primary objective of boosting local production and increasing the added value of exports, including:

Industrial sector

Increase in export refunds in relation to the added value of the product, the temporary reduction of export duties on industrial goods and the elimination of export duties on vehicle exports to Mercosur.

Mining sector

The Government established a maximum rate of 8% for metal export duties.

Agricultural sector

Soybean export tariffs will be temporarily reduced from 33% to 30%, 31.5 and 32% for October, November and December 2020, respectively, returning to 33% in January 2021.

Export tariffs on other soy derivatives will fall further, amounting to approximately 28, 29.5 and 30% for October, November and December 2020, respectively, and 31% for January 2021.

Additionally, up to 11,500 million Argentine pesos will be allocated to compensate and encourage small producers and soy cooperatives.

In the case of biodiesel, export tariffs will be reduced from 30% to 26, 27.5 and 28% for October, November and December 2020 and 29% for January 2021.

Beef imports

In general, the governments of Mexico and Argentina agreed to promote technical cooperation in agriculture, in order to strengthen food security in the region, and advance in post-harvest handling systems in the production and storage of grains, as well as in the opening of the meat trade (including regulations for imports of beef into Mexico).

«Both nations recognize the technological advances in the management of bag silos that will contribute to improve storage conditions, protect basic grains from pests and improve the income of small-scale farmers, who will be able to make their sales at the most convenient time» said the Ministry of Economy.

Mexican imports of fresh and refrigerated beef totaled $ 670 million last year.

In turn, frozen beef imports totaled $ 39 million.

Argentina is a founding member of the Southern Common Market (Mercosur), established in March 1991 with Brazil, Paraguay and Uruguay as full members or the “Member States”.

The National Service for Agrifood Health, Safety and Quality (Senasica) will establish with its Argentine counterpart, the National Service for Agrifood Health and Quality (Senasa), the steps to follow in order to open up Mexican imports of beef under the terms agreed.

Among the beef imports from Mexico, Argentina is not currently an origin.