In defense of Brazilian cattle ranchers.
Dilma's visit to the United States should have been used to reduce sanitary barriers, but that step was not taken.
President Dilma missed an opportunity to take an important step in the process of recognizing the qualities of Brazilian beef. Unfortunately, this time we will not be able to advance another step in a process that has been dragging on for more than ten years.
With a great sense of opportunity, in April 2010 the negotiators of the cotton agreement, which suspended the retaliatory measures that Brazil was preparing to initiate (a result of the Americans not complying with what the WTO had determined in the context of the dispute concerning irregular cotton subsidies), included two issues relating to the sanitary authorization of meat products.
This parallel to the cotton issue was formally recognized by the Americans, although they were careful to separate it from the negotiation of subsidies.
The first point was the recognition of Santa Catarina as a region free of foot-and-mouth disease without vaccination, as well as other diseases affecting cattle and swine. This process had its risk analysis study more advanced at the time and was soon after, as agreed, put out for public consultation. After the regulatory deadlines and a slight delay, it was concluded.
The second point was the recognition of the foot-and-mouth disease-free region, although still requiring vaccination, which encompasses 13 Brazilian states, as eligible to export aged beef.
The risk analysis study, which had been dragging on for many years, was not completed, and the US had committed to finalizing it and putting it out for public consultation in early 2011. The year passed—and there was no sign of the consultation.
It was learned that the sanitary study had been successfully completed within the Department of Agriculture's sanitary agency and sent for review to the White House administration and budget office. The next step would be to make the study's results available for public consultation for 60 days.
Unfortunately, it wasn't to be this time. Health studies should be independent of political pressures, but unfortunately that's not how it works in the real world. Dilma's visit should have been used for that step.
I hear it will be soon. We've already lost many years waiting. I hear that Brazil is accelerating sanitary studies of interest to the Americans. This issue of beef was part of the cotton agreement.
I hear that Brazil wouldn't be competitive enough to export to the North. Experience shows that only after the market is open is it possible to state this with certainty, and, moreover, markets fluctuate, and it's important to have an open market precisely for that reason.
I didn't see the rancher, the main stakeholder, putting pressure on them. It would be up to the government to act, defending the sector's interests, even if it has proven to be disorganized.
PEDRO DE CAMARGO NETO is a cattle rancher and president of Abipecs.