Home Agribusiness Favorable opinion from WTO’s report to Brazil in dispute with Indonesia

Favorable opinion from WTO’s report to Brazil in dispute with Indonesia

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The World Trade Organization (WTO) issued a report with a favorable opinion on Brazil in the country’s panel against Indonesia regarding the restrictive measures imposed by the Asian country on imports of chicken meat.

In its report, the WTO agreed on the arguments presented by Brazil and recommended that Indonesia amend the legislation and practices that block imports of Brazilian chicken meat.

“Since 2008, we have tried unsuccessfully to negotiate the opening of the market with the Indonesian authorities.” In response to this protectionist stance, we turned to the Brazilian Government, which filed a panel request “This is a fundamental victory, which should positively impact the performance of chicken meat sales in 2018,” said Francisco Turra, executive president of the Brazilian Animal Protein Association (ABPA).

Barral M Jorge Consultores Asociados supported the ABPA in this process, supporting the Ministry of Foreign Affairs with studies and other subsidies.

Indonesians will still have 60 days to file an appeal request, which will be reviewed by the WTO Dispute Settlement Body. The expectation is that the process is completed in up to six months.

Brazil is today the largest producer and exporter of Halal chicken in the world. A third of all the country exports is directed to the Islamic market. In 2016, only the Middle East, the main destination of Brazilian shipments, imported 1.57 million tons, generating revenues in excess of 2,300 million dollars.

With a population of Muslim majority (almost 90% of the 260 million inhabitants, according to the World Factbook, CIA), Indonesia is one of the markets with the greatest growth potential in the consumption of animal protein worldwide. Every inhabitant of the Asian country consumes, on average, 6.3 kilograms of the product per year. In Brazil, this index reaches 41 kilos per capita.

Indonesian market is currently closed for imports of chicken meat. All its production is directed to the domestic market, the equivalent. In 2016, they were 1.64 million tons produced. “In this context, we want to consolidate ourselves as partners for Indonesia’s food security, occupying spaces that are now open, complementing local production,” analyzes Turra.