The dispute between Brazil and Uruguay over dairy exports has not yet reached a happy ending, despite the goodwill expressed by Brazilian President Michel Temer to his counterpart Tabaré Vázquez in a telephone conversation they had last Friday (13.10,2017). The Brazilian mission that was scheduled to arrive in Uruguay this Monday to settle the conflict never materialized.
"No hubo no official contact"and it is difficult to imagine the possibility of this mission taking place in the next 48 hours," sources told El Observador.
What there was on Tuesday was a video conference for half an hour between the Undersecretary of Livestock of Uruguay, Enzo Benech, and the Secretary of Agricultural Defense of the Ministry of Agriculture and Supply of Brazil, Luis Rangel, to find a solution to the conflict, as was the commitment that Temer made to Vázquez. "The one who has to move is Brazil. We are waiting for a gesture from them," sources familiar with the negotiations told El Observador.
Meanwhile, dairy trade between the two countries is awaiting a solution to normalise it. licenses granted until October 12 were allowed. Shipments are authorized for that date, but no new business has been possible. Brazilian importers themselves are having difficulty doing business," admitted the president of the National Milk Institute (Inale), Ricardo de Izaguirre, to Carve radio on Tuesday (18.10.2017).
The decision to suspend the licenseThe Uruguayan dairy industry was resolved unilaterally by the Brazilian Minister of Agriculture under the argument that Uruguay "triangulates" in the sale of dairy products to Brazil. According to De Izaguirre, Inale gathered data in a report that proves that all the milk exported from Uruguay actually belongs to producers in the country. This document was sent to the Foreign Ministry and the Ministry of Livestock, Agriculture and Fisheries (MGAP) last Friday.
Minister Maggi told Brazilian media on Monday that the suspension of milk imports is "provisional and feasible." He also said that if Uruguay appeals to the World Trade Organization (WTO) it will have the right to export to Brazil.
However, Maggi maintained its position that the milk market needs to be regulated by adopting an export quota for Uruguay, similar to the 5.000 tonnes per month adopted in the trade of the product between Brazil and Argentina.
The government's position is that there is no possibility of negotiation because the issue of triangulation is not in question. Uruguay is also not willing to allow any attempt to establish quotas in the dairy market, as is the case between Brazil and Argentina.
Source: The Observer
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