By Artur Piva
The Brazilian Association of Agribusiness (Abag) reacted to legislation approved by the Parliament of the European Union (EU) that restricts the market for the sector’s exports.
It aims at forbidding member countries of the block from buying coffee, beef, soybean, and other commodities if the production is linked to deforested areas.
“It was a unilateral move that they made without listening to Brazil,” said Luiz Carlos Carvalho, president of Abag, in an interview with Reuters.
The new law runs up against the Brazilian Forest Code, which allows the deforestation of some areas for production.
The regulation grants this permission without, however, threatening preservation areas.
Reserves within farms are also determined by Brazilian law.
In the Legal Amazon, for example, the national legislation determines that 80% of the land on the farm must be a native forest.
Brazil’s environmental regulations have already been praised by Ignacio Ybáñez, the European bloc’s ambassador.
“We recognize that the legal framework that works in Brazil, particularly the Forest Code, is very positive,” said the European diplomat in an interview for issue 127 of Revista Oeste news media.
“Brazil’s environmental legislation is exemplary.”
The new rule approved by the European Parliament does not immediately affect Brazilian agribusiness since all EU member countries still need to approve it formally.
Abag is in contact with the Brazilian government to evaluate how to position before the decision.
The association believes that some nations in the block will reject the measure.
With information from Revista Oeste
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+1.79%
170,934.30
+1.79%
65,223.89
+1.36%
11,379.66
+1.26%
2,904,791
+1.00%
2,465.35
+0.86%
58,698.13
+2.27%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 170,934.30 | +1.79% | +21.85% | 167,927.15 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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