Mexico-Brazil Free Trade? Don’t Negotiate Agricultural Matters
Feb 24, 2010 13:44:53
After elaborating an analysis the CNA (National Agricultural Council of Mexico) indicated that an eventual commercial agreement with Brazil might represent a threat for the national agricultural sector.
MEXICO, February 23, 2010.- Because of the imminent agreement between Mexico and Brazil to establish an Free Trade Agreement (FTA) that could benefit to both countries, the National Agricultural Council of Mexico (CNA) asked "not to negotiate an FTA in agricultural matters", due to the fact that enormous inequities exist between both economies.
After elaborating an analysis and presenting it to their members, the CNA indicated that an eventual commercial agreement with Brazil might represent a threat for the national agricultural sector ranging from competitiveness up to plant safety.
Benjamin Grayeb Ruiz, vice-president of Exterior Trade of the CNA, indicated that a motion has never existed on the part of the businessmen to establish a commercial agreement with the first economy of Latin America
He added that it is not only a matter of rejecting an agreement, but it is necessary to consider the enormous internal disadvantages that exist and the lack of necessary structural reforms to strengthen the competitiveness.
The vice president of the organization commented that during 2004 and 2008 the trade balance with Brazil had a negative balance of 3.55 billion dollars.
"Unquestionably the Mexican agricultural sector has nothing to gain from a commercial agreement, even if we are the two major economies of Latin America, in agricultural issues they are much stronger than us," said Grayeb.
According to the entrepreneur, it is important to remember that there are bad precedents on trade with Brazil, which in most cases have been reinforced by non-tariff discretionary barriers.
Furthermore, the National Union of Poultry Farmers (UNA), represented by Crivelli Jaime Espinoza, president of the organization, strengthened the position of the CNA and said any trade agreement with Brazil could result in a dramatic decrease in both domestic production, as well as fall of prices and job losses.
The agency added that it is important to consider that a great boom in Brazil in recent years, which has placed it as a great world power, as well as maintaining the third place worldwide in production of chicken and turkey, and the leading exporter of chicken meat and the second largest exporter of turkey. (The Weekly Agency, ESA)
