(Bloomberg) — French grocer Carrefour SA’s decision to not sell any meat in the country produced by the South America trading bloc known as Mercosur is drawing the ire of government officials in Brazil.
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Brazil’s lower house has decided to vote on a new bill to enforce “economic reciprocity” this week in response to the French protectionism, according to Lower House Speaker Arthur Lira. The proposal establishes that Brazil won’t be part of any trade deal that can impact or set restrictions on its exports, when other countries or bloc signatories don’t adopt equivalent instruments in their legal framework.
“It’s not possible that the CEO of a major group like Carrefour doesn’t recant from a statement of practically not buying animal proteins from South America,” said Lira at an event in Sao Paulo on Monday. “Brazil, the National Congress, entrepreneurs and the population must clearly answer him.”
Last week, Carrefour Chief Executive Officer Alexandre Bompard said in a statement that the retailer is committed to not marketing any Mercosur meat in France in solidarity with domestic farmers. The move comes amid protests by French farmers against a European Union free trade agreement with Mercosur, a bloc formed by Brazil, Argentina, Uruguay and Paraguay.
The deal would give South American meat suppliers broader access to the French market. In his letter, Bompard said the deal between the European Union and Mercosur threatened to overflow France with meat “not respecting its requirements and standards”.
Agriculture Minister Carlos Favaro endorsed a decision from Brazilian beef producers to suspend sales to Carrefour SA’s local unit in retaliation to the supermarket operator’s move.
“We will not tolerate untruths on Brazilian products. Brazil is very responsible with the quality of what it sells to our Brazilian consumers and those from all over the world,” said Favaro in a post on X, former Twitter.
Companies suspending sales to Carrefour include JBS SA, the world’s largest producer, and Minerva SA, according to people with direct knowledge of the matter, who asked not to be identified discussing private matters. The Brazilian meat producers’ retaliation against Carrefour was first reported by local media.
The French retail company’s subsidiary in Brazil acknowledged in a Sunday statement that the boycott is likely to affect customers. Carrefour has more than 1,000 outlets in Brazil, which makes up for more than 20% of its global sales, according to data compiled by Bloomberg. Atacadao SA, which operates Carrefour stores in Brazil, fell as much as 5.5% in Sao Paulo before erasing most losses. JBS shares trimmed losses after falling as much as 1.2%, with Minerva down by 1.1%.
JBS and Minerva declined to comment.
On Saturday, 44 industry groups in Brazil signed a letter condemning Carrefour CEO’s decision, adding the move shows a “protectionist approach that contradicts the role of a global company with operations in diverse and interdependent markets.”
Brazilian meat—industry group ABPA said Carrefour’s Bompard made an “unreasonable statement” by saying that meat produced in the South American nation doesn’t comply with French rules. Producers are awaiting clarification from Carrefour to recognize Brazilian meat’s “quality and sustainability,” ABPA President Ricardo Santin said in an interview Monday.
–With assistance from Clarice Couto and Gerson Freitas Jr..
(Adds ABPA president comment in last paragraph)
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Publish date : 2024-11-25 09:42:00
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