IMPACTS OF THE 2005 FOOT AND MOUTH DISEASE OUTBREAK ON BRAZILIAN BEEF EXPORTS

Abstract

Foot and Mouth Disease (FMD) can lead to sanitary barriers to international trade and involves highinvestments for control and great losses in the event of an outbreak. This study investigated the impactscaused by FMD on the exports of fresh beef from Brazil after the 2005 outbreak and the observanceof the regionalization principle of the Agreement on the Application of Sanitary and PhytosanitaryMeasures (SPS) by countries member of the WTO that were listed as the top 10 beef importingcountries in 2004. The FMD outbreak that began in 2005 did not limit the increase in exports of freshbeef from Brazil, but impacted negatively on exports from Mato Grosso do Sul and Paraná States.The disease did not impact exports to the United States, Japan or Mexico, since these markets were closed to Brazil. Saudi Arabia, Russia and Iran were not members of the WTO in October 2005 andtherefore had no obligation to respect the principle of regionalization, though Russia respected it.Among the other major importers of 2004, the Netherlands, Egypt, Italy, United Kingdom, France,Germany and Spain respected the principle of regionalization of the SPS Agreement. Chile did notrespect the principle and the occurrence of the disease closed the market to Brazilian fresh beef.

Keywords: Disease; diplomacy; international trade; sanitary barrier; SPS agreement.