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Investor Presentaiton

32 PROTEINS WITHOUT BORDERS THE IMPORTANCE OF TRADE AGREEMENTS In international relations, countries usually establish relationships seeking to strengthen historical, cultural, and commercial ties. In a globalized world - that is, a connected and interdependent world – it is essential to establish strategic partnerships between countries and economic blocks. Building this strategic link requires investments and extensive technical, commercial, and diplomatic work - which, in Brazil, has been performed exceptionally well by the Ministries of Agriculture, Foreign Affairs, and Finance. The efforts to establish new bilateral sanitary and animal health agreements to support the exports of our products have been gaining momentum. Partnerships with relevant markets are part of the daily agenda of public and private sectors. However, the good performance of the Brazilian poultry and pork production in international markets is hindered by structural limitations. The competitiveness of these sectors is, in some cases, undermined by Brazil's absence in comprehensive trade agreements. By means of the Mercosur bloc, Brazil benefits from only eleven trade agreements, which involve just fourteen countries - and unfortunately, none of these agreements which are already in force, grant favorable tariffs for Brazilian poultry and pork meat, eggs, and genetic material. Consequently, the sector is exposed to high import tariffs, including the main markets where the country operates, which significantly affects Brazil's competitive edge in foreign markets. For comparative purposes, our Chilean neighbors have signed 30 trade agreements, which encompass the impressive number of 70 countries, including the largest economies and consumer markets in the world! Bringing into force agreements such as the Mercosur and the European Union and entering into agreements with countries such as Canada, South Korea, Vietnam, Indonesia, and Singapore is extremely important to enable a greater integration of Brazil in global value chains and make our industries more competitive in the overall scenario. Sharpening the competitive edge of our products does not yield positive results for Brazil only. All nations around the globe that currently rely on our production will also benefit. It is a partnership in favor of complementarity through the supply of healthy, high- quality food in sufficient volumes, safeguarding food security for the population. AFTER ALL, THERE SHOULD BE NO BORDERS FOR FOOD! Agreements in Negotiation by Brazil via Mercosur: European Union Canada South Korea Brazilian Association of Animal Protein - ABPA Vietnam Indonesia Singapore
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