Argentine meat exports to China are under threat due to tariff conflict between Brazil and the US

"We've always believed that export duties or withholding taxes are an ineffective tax  ; the entire agricultural sector believes this, and now the government does too," said Fernando Herrera. He emphasized, "We ultimately strive for the complete abolition of withholding taxes."

Reduction of deductions in the meat sector

Regarding the specific meat price reduction , he said: "It was reported that meat would be completely excluded from sale, but that information leaked. We believe that a 75% reduction, as I said, is a positive development." However, he offered his view on the impact: "It's not that big. I think it's mostly symbolic; it's insignificant, it's not a radical change."

Herrera explained that one of the effects that a stronger reduction could have is pressure on cattle prices : “If the increase was greater and all operators went to buy cattle, this would be reflected in the price, and perhaps the increase would be greater than the rate reduction, which would lead to a neutral result, at least for the export business.”

Prospects for Argentine meat in the international market

He also mentioned international markets. According to the Argentine Association of Agricultural Exporting Countries (APEA), the average export price for Argentine beef in the US was around $10,700–$11,000 per ton. "It appears that the quota is currently being used primarily for high-value cuts," he explained.

Regarding rumors about expanding the quota to the United States, the source commented: "There is no official information. All we know is that global negotiations are underway. Everything else is speculation."

Regarding the tariff conflict between the US and Brazil, he analyzed: "Brazil would have to pay the 10% applicable to all countries, plus this 40%, plus the existing 26.4%, which would give it a tariff position of 76.4%. In the same vein, he stated that this could lead to the diversion of Brazilian exports to China: "If Brazil supplies China with a large volume of meat at dumping prices,   China will obviously stop buying some meat from Argentina and Uruguay."