The economic damage for Brazil is significant; Brazil is the world's largest exporter of poultry.
EU member states jointly decided on an import ban after laboratory analyses showed it concerns a highly contagious variant of the bird flu virus. Several Brazilian export facilities were immediately placed on a blacklist by the EU. This means their products are temporarily prohibited from being sold on the European market.
The decision follows earlier measures by China and the US, which also closed their borders to Brazilian chicken. They too are concerned about the spread of the virus. According to multiple sources, the outbreak has been detected in both commercial poultry farms and wild birds in various regions of Brazil.
Brazil is one of the largest exporters of chicken meat in the world, and the measures have a severe impact on the country. According to Global Banking and Finance, Brazil accounted for nearly one-third of global chicken meat exports in 2023. The recent measures have immediate consequences for Brazil’s agriculture and food sector.
European consumer and environmental groups are using this moment to increase pressure on both European and Brazilian policymakers. They have long advocated for stricter criteria regarding food hygiene, environmental protection, and public health, partly within the framework of the still unapproved Mercosur trade agreement. Those negotiations remain stalled for now.
Although the Brazilian government points out that the virus does not pose a public health risk if meat is properly cooked, many importing countries remain cautious. They prefer to err on the side of caution. Economic interests do not outweigh the risk of further spread of the animal disease.
A return to normal trade relations does not seem imminent. As long as the situation in Brazil is not under control and the European requirements for food safety and the environment are not relaxed, the import ban remains in effect. This appears to further delay discussions about the Mercosur agreement.