Argentina beef exports to US face test from Trump proposal

By Kylie Madry

Aug 28 (Reuters) - ‌Argentina's booming ​beef ​exports to the United States could face a new test after Washington moved to widen tariff-free ‌access for suppliers, potentially increasing competition from neighboring ⁠cattle powerhouse Brazil, according to a report on Friday.

Argentina's beef volumes to ‌the U.S. tripled in ‌the first seven months of this year. Shipments to the U.S. accounted for nearly 20% of all beef exports - ​underscoring how important the market has become for Argentina, according to an analysis published by the Rosario ⁠trade exchange.

• The surge has been driven by strong U.S. demand as domestic cattle ​supplies tighten, particularly for lean beef used in hamburgers and processed foods. Argentina has preferential ​access for 100,000 metric tons of ‌beef exports to the U.S. this year, and has made use of 61% of that ⁠total so far.

• But exporters are now watching a new proposal by President Donald Trump to open a 90-day, tariff-free quota ⁠of up to 300,000 metric tons of imported beef for grinding, aimed ​at boosting supply and lowering ground beef prices in the U.S.

• Argentina, which would not be eligible for the added preferential access, ‌could lose the ground that helped fuel this year's export surge, the exchange said. It ‌could also favor Brazil, a much larger exporter that is ⁠looking for alternative markets ‌as access to China ​tightens and uncertainty grows over shipments to the European Union.

(Reporting by Kylie Madry. Editing by Lucinda ‌Elliott)

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