Recife - The trade negotiations now underway between Mercosur and the European Union, which are scheduled to end on October 31 with an agreement, will benefit the agribusiness sector in Brazil's Northeast region, says Antonio Donizeti of the National Agriculture Confederation (CNA).

Donizeti explains that shrimp, tropical fruit, cigars and sugarcane-based ethanol should obtain expanded import quotas and lower surtaxes. He points out that with regard to shrimp (96% of Brazilian production is in the Northeast) the tendency is to eliminate the surtax, now at 4.2%. EU imports of shellfish are worth some US$2 billion annually, but Brazil sells only US$52 million.

Last year, reports Donizeti, the Northeast region exported mainly sugar, shrimp, fruits, cacau, leather goods, soybeans and cashew nuts. The problem is that many of those goods face sanitary barriers on the international market, especially in the US. So, says Donizeti, the solution is to make the necessary investments in the sector to raise sanitary standards and continue on track to maintain Brazil's position as a strong exporter.

Agência Brasil
Reporter: Márcia Wonghon
Translator: Allen Bennett
09/24/2004