Entrepreneurs in the sector have asked for the opening up of a new export quota of 36 thousand tons per year, in addition to the quota of 15,500 tonnes established in the CAFTA-DR.
To minimize the effect felt by that the entry of meat from Brazil to the US under the quota for "Other countries", within which Nicaragua currently exports, entrepreneurs in the meat sector have asked the US government for the ability to increase sales through an additional quota, of a total of 36 thousand tons a year.
Concerns have arisen over a recent agreement signed between the US and Brazil, in which the South American country is allocated a significant quota from the same segment that Nicaragua supplies.
The new quota for imports of fresh beef from Brazil is considered to be in the same category as the quota that corresponds to Nicaragua, called "Other countries".Nicaraguan exporters fear that the quota, amounting to 65 thousand tons per year, will be filled by Brazil leaving no space for sales of meat from Nicaragua and other countries also included in this segment.
The first half of the year has already seen the export of all of the 1,800 tonnes of quota available under the commercial treaty of 2010.
Nicaragua has requested an extension of the annual quota of 1,800 tons of beef which the Central American country currently exports under a trade agreement in force since 2010.
Orlando Solorzano, chief of the Ministry of Development, Industry and Trade (Mific) and Joseph Adam Aguerri, president of the Superior Council of Private Enterprise (Cosep) confirmed that the country wants to increase the quota of meat sales to Panama, allowing them to sell more than what is allowed in the remainder of 2013.
The signing of EU Association brings up the outstanding issue of export quotas for the allocation of tuna and beef from Central American countries.
The agreement establishes a quota of 4 metric tons (TM2) for tuna and 9,500 tons for beef, with an annual increase of 475 tons. At the time Central America has yet to resolve internally how to allocate such quotas.
The criteria for allocating E.U. meat quotas in Central Amerca generates tension and mutual threats of trade restrictions.
Costa Rica and Guatemala suggest that the quota be divided equally among all countries, a proposal that Nicaraguan exporters find unacceptable, said Solon Guerrero, President of the Federation of Livestock Associations of Nicaragua, FAGANIC.
Though this will depend on compliance with European standards for the entry of meat into the EU block.
As the agreement comes into force, any part of a quota not used due to incompliance with EU requirements will automatically be reassigned to another country.
"The Central American Beef Industry Federation reached this consensus on 9 June in Honduras, according to a letter sent by the organization to Costa Rica's Commerce Minister, Anabel González," reports El Financiero on its web portal.
Central American businessmen agreed to adjudicate the meat quota assigned by the European Union to the country that first complies with the required food safety and traceability requirements.
The region had to decide how to distribute a quota of 9.500 yearly tons of meat that can be shipped to Europe without paying tariffs.
The proposal to divide up the 9,500 ton EU allocation equally is rejected by Nicaragua.
Onel Pérez, president of CANICARNE (Nicaraguan association of beef producers), commented that 70% of meat exported from Central America comes from Nicaragua.
Pérez and Ronald Blandón, director of Nicaraguan cattle farming association, CONAGAN, will travel to Honduras to discuss the distribution of the quota with other Central American businessmen.