Brazil’s agriculture minister on Monday expressed support for national meat suppliers who have halted deliveries to Carrefour supermarkets in a growing row over Mercosur trade talks.
Carlos Favaro told the GloboNews broadcaster that he was “happy with the attitude of our suppliers”, who have been rejecting retailers in Brazil from the French supermarket group since last week.
The supply disruption was caused after Carrefour’s CEO Alexandre Bompard told French unions last week that his supermarket chain “would not sell meat from Mercosur” in its French stores.
The row is linked to France’s opposition to the European Union’s trade deal with Mercosur, amid protests from French farmers who fear the pact would open the door to unfair competition.
The Mercosur bloc includes Brazil, Argentina, Uruguay and Paraguay.
Favaro said: “If Carrefour doesn’t want to buy Brazilian meat for the French, then Carrefour won’t buy Brazilian meat to put on the shelves here in Brazil.”
Carrefour Brazil confirmed in a statement that it was affected by the suppliers’ decision.
A source at major meat supplier JBS told AFP on condition of anonymity that since last Friday the company “has taken the decision to suspend beef deliveries to Carrefour-run stores in Brazil.”
Deliveries “have been completely suspended and will continue to be suspended” until Carrefour’s French boss returns to his post, the source said.
The Carrefour CEO’s announcement sparked outrage in Brazil, with the government and the powerful meat industry accusing France of “trade protectionism” and spoiling the quality of the country’s meat exports.
Brazilian media are calling the disrupted meat deliveries to Carrefour supermarkets a ‘boycott’ and many Brazilians online have applauded it.
– Carrefour looks for ‘solutions’ –
Carrefour Brazil said in a statement on Monday: “Unfortunately, the decision to suspend meat deliveries has consequences for our customers.”
While a company spokesperson emphasized that “there is no shortage of meat in stores,” Carrefour’s latest statement said it was looking for “solutions that will allow us to increase the supply of meat to our stores.” resume.”
Carrefour Brazil noted that it served “millions of customers” in the country and had a workforce of more than 130,000 employees.
The developments in Brazil come as French farmers continue protests to pressure Paris to block the Mercosur deal.
Next week, Mercosur countries will hold a summit in Uruguay, with discussions on progress on the trade deal with the European Union, which has been under negotiation since 1999.
French President Emmanuel Macron reiterated his strong opposition to the deal as he attended a G20 summit in Brazil last week.
However, the European Commission plans to quickly conclude the agreement, the contours of which were agreed in 2019. Germany and Spain have also expressed their impatience to see the deal completed.
rmb-lg/aha