Chinese blockade on Brazilian meat stalls bilateral trade, says Brazil-China business council

10 October 2007

Sao Paulo, Brazil, 10 Oct – China’s restriction on Brazilian meat is one of the main obstacles to increased trade between the two countries, the executive-secretary of the Brazil-China Business Council (CEBC) told Macauhub.

“The issue of meat is sensitive,” said Rodrigo Maciel, who was in the Chinese city of Dalian in September for the World Economic Forum representing the CEBC, which has companies such as Vale do Rio Doce, Embraer and Odebrecht amongst its Brazilian associates.

At the Dalian forum, according to Maciel, “the blocks on entry of Brazilian meat into the Chinese market were pointed to as an important obstacle that needs to be overcome.”

The other big obstacle to the advance of bilateral trade would be the difficulty in obtaining licenses for logistics projects in China.

According to Maciel, Brazil’s investment in trying to reduce the Chinese blocks would bring, “great profits to Brazilian meat producers.”

China announced a blockade on beef from all regions of Brazil in January 2006, after a foot and mouth disease breakout.

In 2005 Brazil sold US$2.3 million in beef to the Chinese, which accounted for a 72.5 percent rise on the previous year.

According to Maciel, however, meat is not the only food product that could provide gains for Brazil.

“Increased consumer income drives consumption of beef, poultry, fish, dairy products and fruit, diversifying a die that has thus far been rich in grains,” Maciel told Macauhub. (macauhub)