The National Cattlemen's Beef Association (NCBA) is asking the American government to take tougher measures against the export of Brazilian beef to the country.

Currently, Brazil pays a 76.4% tariff when selling beef to the United States. The previous rate was 26.4%, which is now replaced by a new 50% fee, which came into effect in August.

"Brazil’s weaker currency and lower cost of production will allow Brazil to absorb the tariff and continue to export beef to the U.S. market relatively undeterred" says Kent Bacus, director of the NCBA, in a letter to the U.S. Trade Representative (USTR, linked to the White House).

On Wednesday, September 3, the USTR will hold a hearing on alleged unfair practices by Brazil in trade, and the NCBA has signed up to speak. In its request, the organization indicated that it would ask for a suspension of Brazilian beef purchases.

"NCBA greatly appreciates the tariff increase on imports from Brazil. We believe this is a good first step, but [It] does little to hold Brazil’s beef imports in check, while it discourages imports from other trade partners like Japan, Ireland, and the United Kingdom," says Bacus.

"Tariffs alone may not be enough to hold Brazil accountable. We believe full suspension is necessary, and further restrictions must be applied until Brazil’s claims of equivalency for food safety and animal health are confirmed," Bacus adds.

The NCBA director also accuses Brazil of not following sanitary standards and making it difficult for American beef to access the Brazilian market.

"We are not concerned with Brazilian imports displacing U.S. beef in the U.S. market, but we are concerned that the lack of accountability in food safety and animal health in Brazil’s cattle and beef production may undermine consumer confidence in beef consumed in the United States," says Bacus.

Despite the NCBA's complaints, the new tariff will make Brazilian beef exports to the U.S. more difficult. The Brazilian Association of Meat Exporting Industries (Abiec) expects a sharp drop in sales. Roberto Perosa, president of Abiec, stated in an interview with EXAME that the new tariff makes exports "unfeasible" and that Brazil is expected to lose $1 billion in sales.

Beef for burgers

In the process filed by the USTR, another organization, the Meat Import Council of America (Mica), which gathers meat importers to the U.S., defends Brazilian products.

In a letter sent in August, director Michael Skahill defends that the U.S. relies on Brazilian beef imports to produce ground beef and hamburgers and that without the ability to import the product, American consumers and producers will face losses.

"Despite being one of the largest producers and exporters of beef in the world, the U.S. faces a structural deficiency in an essential product: lean beef trim, a key ingredient in the production of ground beef," the letter says.

The document points out that this type of trim is not produced in sufficient quantities by the U.S. One reason is that the American herd is optimized for the production of high-quality cuts, like marbled steaks (interspersed with thin layers of fat).

"Imported lean beef trim is used by American processors to mix with domestic high-fat trim, creating the ground beef products widely consumed by American families and food service providers," says Sullivan.

This mixture, according to him, helps the American industry meet the country’s demand, with about 50 billion hamburgers consumed annually.