At the end of June 2015, Latin America received good news in the export sector: the United States will do it again import argentinian meatwhich has not happened since 2001, when foot-and-mouth disease was detected in cattle in that country.
“After 14 years of negotiations, the United States recognizes Argentina’s status as a foot-and-mouth disease-free country. This means there is potential to recapture an interesting market for high-quality meat,” Argentina’s Agriculture Minister Carlos Casamiquela said on June 30, the day the end of the ban was announced.
Next, understand what this means for Argentina’s economy and how embargo in import and export.
The importance of Argentine meat declined
The United States ban on imports of Argentine meat was extremely detrimental to the South American country as it led to decline in exports this segment for several consecutive years. Between 2005 and 2014, Argentine meat exports fell by 60%, according to the Cronista website.
Before this embargo (and a few years after) Argentina was one of the main export countries flesh of the world. In 2004 it was responsible for 9.2% of world trade. In 2015, the country ranked 11th according to a United States Department of Agriculture (USDA) ranking, selling only about 10% of what Brazil exports, ranking No. 1 with 2.1 million tons.
But with the end of the embargo, this extended to Canada and Mexico because they are members of Nafta, the North American Free Trade Agreement, the Argentine government hopes increase their exports at $280 million per year.
Why Argentine Meat Was Banned by the United States
As we have seen, the United States vetoed imports of Argentine meat in 2001 after discovering it aphtosis fever. The South American country claims that this ban has been protectionist in nature (with the sole purpose of protecting the domestic economy from cheaper or better quality products from abroad) at least since 2007, when international organizations started recognizing Argentina as a country. Illness.
Protectionist measure or not, the reality is that each country sets its own rules for importing and controlling these products. For example, in order for a country to export meat to the United States, it is necessary to obtain certification that quality control it is satisfactory in five risk areas: hygiene control; control of animal diseases; processing and death control; Waste control and execution control.
Without this certification, a document that must contain the name of the product; country of origin; amount and weight of the content; Ingredient list; animal species from which it originates; etc. no exporter manages to sell their products in the United States.
Moreover, although the American authorities allow the inspection to be carried out in the country of origin, the exported product is checked again upon arrival at ports of entry in the United States.
According to Argentina’s Ministry of Agriculture, there are an estimated 18 refrigerators in the country fit and meet American import regulations.