MercoPress. South Atlantic News Agency

Brazilian House Speaker says reciprocity coming up for Carrefour

“We are very bothered by European protectionism,” Lira said

Brazil's Lower House Speaker Arthur Lira spoke Monday against Europe's protectionism, particularly that of France, and announced that a bill would be voted on this week providing for “economic reciprocity.” If approved, the Brazilian government would be prevented from signing any international agreements with clauses restricting the import of Brazilian products unless the signatory countries adopt equivalent environmental protection measures.

“We are very bothered by European protectionism, and especially that of France, towards Brazil. This week, the National Congress will include in its agenda the Law of Economic Reciprocity between countries,” Lira said in connection with recent statements from Carrefour CEO Alexandre Bompard, who announced his intention to discontinue the purchase of meat from Mercosur countries, including Brazil.

“It is not acceptable that the CEO of a major group such as Carrefour does not retract a statement that practically implies to stop buying animal proteins from South America,” Lira insisted.

The bill Lira was referring to was submitted back in April and contemplates an amendment to the National Policy on Climate Change (PNMC), prohibiting Brazil from entering into international agreements that impose discriminatory restrictions on Brazilian products.

In the meantime, Brazil's largest slaughterhouses such as JBS SA, Minerva Foods, and Masterboi stopped meat shipments to Carrefour. In addition, chicken and pork companies are considering similar retaliatory measures.

On Nov. 23, representatives of 44 Brazilian agri-food companies signed an open letter to Bompard about the quality of meat produced in Mercosur countries, not only the meat industry but also agricultural machinery (Abimaq), vegetable oils (Abiove) and dairy products (Viva Lácteos), soybeans (Aprosoja), juice exporters (CitrusBR) and the sugar industry (Unica).

Hotels and restaurants in Sao Paulo also called for a boycott of the French chain, stating that Carrefour should show “more respect for the products that enrich its shareholders.”

Also Monday, Agriculture and Livestock Minister Carlos Fávaro expressed his support for the decision of Brazilian meat packing plants not to sell to the Carrefour group in Brazil either, in response to the measure taken in France.