Argentine Rural Society Flags Export Risks from China's Beef Quotas

Argentina's Rural Society (SRA) has warned that China's new quotas and tariffs on beef imports pose significant challenges to producers, who depend heavily on the Chinese market, following the policy's announcement earlier this week.

In a recent analysis, Argentina's Rural Society (SRA) highlighted the challenges arising from China's safeguard measures on beef imports, effective from January 1, 2026. These include country-specific quotas—511,000 tons duty-free for Argentina in 2026, rising slightly in subsequent years—and 55% tariffs on excess volumes, as detailed in the initial announcement.

China absorbs around 70% of Argentina's beef exports, per Instituto de Promoción de la Carne Vacuna (IPCVA) data. The SRA report emphasizes risks to market access and competitiveness, urging close monitoring of Chinese trade policy shifts.

Producers express concerns over operational impacts, underscoring the agricultural sector's exposure to international market changes. While some experts see limited short-term effects, the SRA analysis stresses the need for vigilance and potential diversification.

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Tractors blocking A61 highway near Carcassonne as farmers protest DNC culling and Mercosur deal, dismantling barriers and barbecuing.
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Farmers block A61 near Carcassonne in escalating DNC protests

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Following earlier highway blockades, dozens of tractors from Coordination rurale, Confédération paysanne, and Jeunes agriculteurs blocked the A61 near Carcassonne on December 17, protesting DNC herd culling and the Mercosur deal. Demonstrators dismantled barriers and barbecued as the government ramps up vaccination for 750,000 cattle, while France and Italy resist immediate EU-Mercosur signing.

The People's Republic of China announced safeguard measures for beef imports starting January 1, 2026, with country-specific quotas and 55% tariffs on excess volumes. These will affect Argentina, with limits of 511,000 tons in 2026, 521,000 in 2027, and 532,000 in 2028. Experts estimate the initial impact will be limited but could encourage market diversification.

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Building on China's safeguard measures announced January 1, 2026, which impose country-specific beef import quotas through 2028 with 55% tariffs on excess volumes (12.5% within limits), Argentina receives 511,000 tons—exceeding 2025 exports by about 100,000 tons—positioning it and Uruguay as key beneficiaries compared to Brazil and Australia. This eases concerns in Argentina's cattle sector, supporting growth without severe restrictions, though capping major expansions.

Building on December's agricultural safeguards amid opposition from France and others, EU states approved the long-stalled Mercosur trade deal in Brussels on Friday, despite farmer protests. The pact protects European designations like Champagne and Feta, includes quotas and emergency brakes for EU agriculture, and strengthens Europe's geopolitical stance in Latin America after 25 years of talks.

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The National Institute of Statistics and Censuses (INDEC) revealed that Argentina obtained a gain of US$ 3.509 million in 2025 thanks to improved terms of trade, driven by a sharper drop in import prices than in exports. Import prices fell 4.5% year-over-year, while export prices declined only 0.6%, raising the index by 4%. This evolution contributed to a trade surplus of US$ 11.286 million.

Argentina's industrial capacity utilization dropped to 57.7% in November 2025, the lowest since March, according to INDEC data. The textile sector plummeted to a historic 29.2%, with business owners warning of mass closures and job losses due to trade openness and lack of internal demand.

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Argentina's textile sector and supermarkets reported a significant sales drop in January, blamed on economic factors like inflation and high costs. Guillermo Fasano, president of the Mar del Plata Textile Chamber, and Fernando Savore, a Buenos Aires supermarkets representative, highlighted weakened consumption despite summer seasonality. Both warned of the impact on workers' pockets and the need for reforms.

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