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Home International Customs Argentina

Delay in re-opening of Brazilian market makes negative situation for growers in Argentinian Valley

byCustoms Today Report
23/04/2015
in Argentina, Brazil, International Customs
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BUENOS AIRES: “There is no specific date yet for the lifting of restrictions on the import of apples and pears.” This was the response given by the Brazilian auditors to Argentinian phytosanitary authorities after their meeting last Friday at the headquarters of SENASA.

All hopes of the export sector of the Argentinian Valley of Rio Negro and Neuquén had been placed on the bilateral meeting to be held later this month in Brasilia, where both countries will again discuss their trade disputes. Pears and apples were in the agenda, but the technical report from the auditors who visited the pome fruit production region between 7 and 17 April will not be completed until before next weekend; therefore, if the changes and corrections to the mitigation system are accepted, any definition for the opening of the Brazilian border will have to be left for after the bilateral meeting in late April.

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“The Brazilian delegation told us that there is still no specific date to address the issue. We hope to have news for the Valley in the first week of May,” said the National Director of Plant Protection at SENASA, Diego Quiroga.

“Our idea was to meet this week to further discuss the opening of the border, but they told us it would be impossible, since the technical report to be submitted to the authorities in Brasilia would not be completed,” stated the SENASA official. It all points to the second half of May as the date when the matter may be resolved.

The delay in the re-opening of the Brazilian market makes the negative situation for growers in the Valley even more difficult. Few licenses are left in the hands of Argentinian firms, and this is already taking a toll on the financial results of fruit companies, due to the halt in sales in the neighbouring country.

“What was not sold in recent weeks has been lost. The situation is very difficult and, undoubtedly, the Brazilian market being closed makes everything much more complicated for us,” said a regional exporter when asked about the issue.

Brazil is the main destination for Argentinian pome fruit exports. The Valley of Rio Negro and Neuquén annually ships about 200,000 tonnes of pears and apples to this destination, with the former accounting for 70% of that volume. This represents a turnover of around 190 million dollars. In the first part of the year, the drop in fruit export volumes to Brazil has been quite significant. Statistics show that the losses amount to around 50% compared to the previous year.

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