Zero duty on Hilton quota to boost MERCOSUR beef exports to the EU

The MERCOSUR-European Union trade agreement brings significant changes to meat export prices, including key tariff reductions starting May 1. Notably, the Hilton quota will now be subject to zero customs duty, enhancing the bloc’s competitiveness and opening new trade opportunities.

One of the most significant aspects of the agreement is the immediate elimination of the 20% duty on the Hilton quota, which will now face a 0% tariff. This reduces costs for accessing the European market and improves prices for high-quality beef. Álvaro Pereira, head of market access and analytics at the National Meat Institute (INAC), explained that the agreement has multi-layered effects, ranging from macroeconomic impacts on agriculture to concrete trade conditions and new export niches.

Pereira noted in an interview with Hablemos de Agro on Radio Carve that nearly half of the containerized goods exported to the EU will now enjoy zero customs duties. For the Hilton quota specifically, the duty elimination represents a tax reduction of $14–15 million, benefiting various participants along the supply chain.

In addition, a new 99,000-ton quota for MERCOSUR countries will be subject to a 7.5% tariff—significantly lower than the 40–50% charged outside the quota. This quota will include 55% chilled beef and 45% frozen beef, though its allocation among countries has not yet been determined.

The agreement also opens opportunities for other products, including dairy and horse meat, which will immediately benefit from zero customs duties in key markets such as France and Belgium. Pereira added that logistical challenges caused by conflicts in the Middle East exist, but MERCOSUR maintains favorable conditions for exports to main destination countries without having to cross conflict zones.

Tags: EU, Beef cattle, duties