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Alexandre Bombard, CEO of Carrefour, provoked strong reactions in South America after he recently stated that the company was “committed to not buying any meat from Mercosur, regardless of the price they may offer us”.
This declaration, made via his social media channels, was addressed to Arnaud Rousseau, president of the French agricultural union FNSEA, as consequence of grower’s protests in the country against the Free Trade Agreement between Mercosur and European Union.
After irate responses from South America, particularly in Brazil, Carrefour’s public relations came to the public to say the decision “is restricted to markets in France” and “has nothing to do with Mercosur’s meat quality or sustainability”, as Mr. Bombard said initially.
According to them, the company tries to help French farmers. They are striving during a difficult moment and cannot compete with Mercosur products.
Brazil’s reaction
The Brazilian Ministry of Agriculture and Livestock (Mapa) expressed its disapproval, emphasising the quality and compliance of Brazilian agriculture with both national and international standards. The ministry highlighted that Brazil has been supplying meat to the European Union for over 40 years, meeting stringent sanitary requirements.
Additionally, Mapa underscored Brazil’s commitment to environmental sustainability and transparency, citing proposals presented to the EU for electronic models that align with the European Union Deforestation Regulation (EUDR).
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Industry concerns
Industry associations have also voiced their concerns. The Brazilian Association of Meat Exporting Industries (Abiec) criticised Bompard’s statement as contradictory, noting Carrefour’s extensive operations in Brazil, where its stores predominantly sell Brazilian meat. Abiec warned that such a stance could jeopardize Carrefour’s business, given that local production may not suffice to meet domestic demand.
Similarly, the Brazilian Association of Animal Proteins (ABPA) lamented the CEO’s remarks, arguing that they are based on misconceptions about the compliance of Mercosur-produced meats with French market standards, and suggested that the arguments serve protectionist motives.
Free trade agreement
This development occurs amidst ongoing debates over the EU-Mercosur trade agreement, which has faced opposition from European agricultural sectors, specially in France, concerned about competition from South American meat imports. Bompard’s statement appears to align with these protectionist sentiments, aiming to support local European farmers by limiting imports from Mercosur countries.
In response, Mercosur countries are evaluating the potential economic impact of Carrefour’s decision and considering diplomatic measures to address the situation. Worth to say, 23.3% of Carrefour global sales comes from Brazil.
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Publish date : 2024-11-24 20:45:00
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