EU beef imports from countries in the Mercosur trade bloc could increase by 140,000t annually, according to a report by the London School of Economics (LSE) Consulting.

As part of the Mercosur deal agreed in June, 99,000t of beef from Argentina, Brazil, Paraguay, Uruguay and Venezula was granted tariff rate quota (TRQ) access, in return for an end to taxes on wine, tinned peaches, spirits and olives.

EU beef imports from the Mercosur countries could increase by 60,000t

The report suggests that in the most “ambitious” scenario, up to 40% more beef could be imported. In a conservative scenario, EU beef imports from the Mercosur countries could increase by 60,000t, the report claimed. The impact assessment report was carried out for the European Commission.

At the “ambitious” import estimate, it suggests that EU production of beef could decline by 1.2%. At the lowest estimate, EU beef production could decline by an estimated 0.7%.

The report also recognised that with only 40% of the land currently used for agricultural activities in the Mercosur bloc, with the exception of Uruguay, where it is 83%, further expansion of the agricultural frontier and land for the purpose of farming could occur to facilitate this growth.

The LSE report alleges that domestic consumption of the Mercosur bloc countries could be cut or stocking rates on farmland increased to meet the demand of the newly available EU market.

Overall, the report concluded that the deal would have a positive impact on all member states.

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Mercosur beef imports to increase by 140,000t

An interim sustainability impact assessment suggests a Mercosur deal could mean an increase in beef imports by 140,000t.