April, 2002 MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY Trade Issues and Barriers to Brazilian Agricultural Exports

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 BRAZIL IN THE WORLD BRAZIL IN THE WORLD F F Area: km2 – (Fifth largest country) F F Brazilian Economy ranks among the ten largest economies F F Brazil has the largest market and best investment opportunities in Latin America. F F Population: million - Sixth largest F F Inflation Rate : < 6 % (last 12 months) F F Brazil is the natural gateway to Mercosur countries F F Brazil has the largest market and best investment opportunities in Latin America. F F Population: million - Sixth largest F F Inflation Rate : < 6 % (last 12 months) F F Brazil is the natural gateway to Mercosur countries

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Use of Land in Brazil - Potential TERRITORIAL DISTRIBUTION - ESTIMATE In million ha AMAZON RAIN FOREST350 BREEDING PASTURES220 PROTECTED AREAS55 ANNUAL CULTURES37 PERMANENT CULTURES14 CITIES, TOWNS, LAKES, ROADS AND SWAMPS20 CULTIVATED FORESTS5 701 Other uses 60 UNEXPLOITED AREA STILL AVAILABLE FOR AGRICULTURE 90 TOTAL851

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 COMMODITIES PRODUCED BY BRAZIL COMMODITIES PRODUCED BY BRAZIL World Ranking of Brazilian Commodity Production

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Productivity : + 70% 90-91/ Evolution of Productivity in Grain Production

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Productivity Growth for Selected Products

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Meat Production 2001/1994 Beef - 30% growth Pork – 67% growth Poultry – 97% growth 1,000 tonnes * Estimate ** 2001 and 2002 Estimate

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Agriculture and Farming   Growth of productivity   Growth of animal and vegetable protein production and exports   Surplus in the agribusiness trade balance   Opportunity to add value   Support for production, productivity and competitiveness

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Brazilian Beef Exports

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Other Export Priorities - Fisheries US$ 1,000 FOB

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Other Export Priorities

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Growth of 20% over 2000 Other Export Priorities - Fruits

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Government Policies to Ensure Animal and Plant Health Animal Health Elimination of:  Foot and Mouth Disease  Classical Swine Fever  Newcastle Disease Traceability Plant Health  Prevention and Control of Pests –Witch´s Broom - Cocoa –Soybean Cyst Nematode, –Citrus Canker, –Cotton Boll Weevil, –Fruit Fly,  Chemical Residues and Contaminants –(Micotoxins e Pesticides)  Prevention of Quarantined Pests

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Brazil´s Agribusiness Exports US$ billion WORLD: Destinies

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Brazil´s Agribusiness Imports US$ 4.93 billion WORLD: Origins

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 The Importance of Agribusiness Trade in the Overall Trade Balance Brazil’s Trade Balance in the year 2000 = - US$ 749 million in the year 2001 = + US$ 2.6 billion Brazil´s Agriculture Exports - Result in US$ billion (41.2% of Total Exports)

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 Obstacles to Trade Tariff Barriers Tariff Peaks Tariff Quotas Sanitary Restrictions

MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY April 2002 ChallengesChallenges International Negotiations  FTAA  European Union and Mercosur  After Doha - New WTO Round Barriers  Seasonal Tariffs  Quotas  Subsidies  Tariff Peaks  Tariff Escalation  Price Bands Logistics Research and Technology

April, 2002 MINISTRY OF AGRICULTURE, MINISTRY OF AGRICULTURE, LIVESTOCK AND FOOD SUPPLY Pedro de Camargo Neto Pedro de Camargo Neto