Although it was accepted as true by the Argentine president that the quota on meat that Argentina could export to the United States paying a minimum tariff of 10% had quadrupled from 20,000 tons to 80,000 tons. Javier Millaythanks the President of the United States for the increase, donald trumpthere is still no official announcement in this regard and there are legal and political challenges to overcome.
among them american business forumIn Miami, Millay said orally: “Argentina will develop its resources and grow an industry that is currently under development. To name a few examples, we have almost the same number of cattle as we did 30 years ago, which is crazy for a country known for the quality of its meat. In line with this, I would like to thank President Donald Trump and the entire administration for reaching an agreement to allocate Argentine meat four times the previous amount.”
According to the portal meat valueMillay’s statement was the first official word on Argentina’s new meat export volumes, but it is still unclear when they will come into effect, their terms and how long they will last. Specialist media noted that the 80,000 metric tons per year figure, if finalized, would be a significant number and that the potential expansion had exporters and ranchers paying close attention to the impact it would have on the local economy.
Argentina currently has a meat import limit of 20,000 tons to the United States, with a 10% tariff (previously zero since April of last year). Quantities in excess of that are subject to a 36.4 percent customs duty.
But when the first version of the quota increase spread, Balor Khan warned: “While this announcement continues to generate expectations, this increase faces a central obstacle: the executive branch lacks the authority to implement it without Congressional approval.”
Completion has been delayed due to unfavorable political conditions. In this context, specialized media cited delays in the agreement reached in April between Washington and London to create a new 13,000 ton British meat quota for third countries, replacing the 65,000 ton British meat quota for third countries, which includes Brazil and Paraguay.
According to media reports, the agreement cannot yet be implemented due to legal restrictions and is subject to the same restrictions as an increase in quotas in Argentina’s favor. The U.S. executive branch can change these allocations only by law, a process that requires legislative approval, a difficult task given that the U.S. is 40 days away from a “government shutdown” due to disagreements between the White House and Congress.government shutdown), impacting the daily lives of millions of Americans. Additionally, North American ranchers are also resisting Argentina’s quota increases.
Another aspect of the debate is concerns about the price of meat in the United States, an issue that has escalated into the public agenda to the point that on Friday, President Trump ordered the head of the Department of Justice to: pam bondibegins a criminal investigation into suspicions of collusion and price manipulation by four companies that control 85% of beef processing in the United States (JBS, Cargill, Tyson Foods, and National Beef).
“I called for an immediate investigation into the meat processing companies that are driving up the price of beef through illegal collusion, price fixing, and manipulation,” Trump wrote on his social network Truth Social.
In fact, when President Trump first mentioned the possibility of expanding Argentine beef quotas, he said that while it would reduce the price North American consumers pay, an increase in the minimum tariff quota of 60,000 tonnes (from 20,000 to 80,000 tonnes) would not have much of an impact. This is equivalent to 0.5% of the total beef consumption in the United States (approximately 12 million tons per year) and 3% of the 2 million tons of beef consumed in the United States. Imports are mainly from Australia, Canada, Brazil and Mexico.
Some experts have said increased quotas for Argentina may not pass the U.S. Congress if President Trump invokes regulations that would give the executive branch the power to release or expand quotas in the event of market disruption that prevents the country from meeting domestic demand “at a fair price.” But in that case, the increase must be open to multiple countries rather than just one, and it must be temporary rather than permanent.
Chilled and frozen meat shipments to the United States totaled 3,900 tons in September, making the United States the fourth most relevant export destination for Argentine meat in the month, according to the latest report from the Argentine Meat Exporters Federation (ABC). ABC reported that chilled products rose 44% to more than $13,000 per tonne, while frozen products rose 37% to nearly $7,100 per tonne. The prices are much higher than those paid by importers in China, which is currently Argentina’s main export destination for meat.
As reported recently infobaethe immediate benefits of increasing meat quotas would be approximately $120 million in tariff savings for Argentine exporters and higher-quality burgers with less fat for North American consumers. As explained by a livestock analyst Victor Tonellicurrently 75% of Argentine meat sales to the United States are “processed meat,” which the United States calls “processed meat.” Ground beef And it was used to make hamburgers. As a result, experts assessed that a significant portion of the initial sales increase would be diverted from “processed meat” currently sent to China to the United States, where wages are higher. This would also improve the quality of North American burgers, since Argentine meat has a lower fat content compared to U.S. meat.
“Argentine meat not only has a low fat content, but it is actually defatted in the refrigerator because the fat content has to reach a maximum of 10% of the fat content measured in the laboratory. They (in the US) have a maximum of 30%. They import our meat and mix it with domestic meat to achieve a low fat content of about 25%,” Tonelli explained.
About The Author
