There was a “justified reaction” to statements by Carrefour’s CEO, says Haddad

The Minister of Finance, Fernando Haddad (PT)stated in the early evening of this Monday (25), at a press conference in Brasília (DF), that there was a “justified reaction” from important Brazilian companies in the refrigeration sector to the statements made by the global CEO of Carrefour, Alexandre Bompard, announcing a boycott of meat from the countries that make up Mercosur.

When asked about the matter, Haddad said he preferred not to comment on the behavior of the French group. Afterwards, however, he expressed support for the reaction of Brazilian companies in the sector.

“Look, I’m not going to comment on the company’s attitude, but there was a justified reaction to this type of statement. It’s a company that is based in Brazil, it doesn’t make much sense. But I don’t want to dwell on this because I believe the company will reposition itself”, stated Haddad.

Since the weekend, some of the country’s main companies have decided to stop selling products to the supermarket chain Carrefour and other companies in the group, such as Atacadão.

The stance is a kind of retaliation for the boycott announced, last Wednesday (20), by the global CEO of Carrefour, Alexandre Bompard, of meat from the countries that make up Mercosur.

The decision by the French group’s CEO was justified as a gesture of solidarity with the European country’s agribusiness, which has taken a stance against the trade agreement between Mercosur and the European Union.

“We have expectations because, during the G20, we had many bilaterals to discuss (the subject). I was personally with the president (from France, Emmanuel) Macron on two occasions, one of them privately, talking about the agreement. He has an absolutely legitimate point of view, in the interests of France. He spoke to Brazilian businesspeople at Firjan, at a dinner offered to him that I attended, about how he understood that the agreement could be made”, said the Finance Minister.

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In a recent participation in the G20 Leaders’ Summit in Rio de Janeiro (RJ), Macron reiterated his government’s position contrary to the Mercosur-EU agreement.

Sewn together since the end of the 1990s, the trade agreement between the two blocs had its first stage completed in 2019, still under the government of former president Jair Bolsonaro (PL). Since then, the terms have gone through the review phase by the countries involved, but little progress has been made so far.

Macron opposes the agreement with Mercosur, mainly for domestic political reasons. The treaty is viewed with skepticism in France, as there is concern about the risk of weakening the country’s agricultural sector. According to the French government, if the agreement is implemented under current terms, French companies that follow stricter environmental laws in their country will have to compete with companies that are not subject to the same standards.

According to Emmanuel Macron, one of the problems with the agreement between Mercosur and the EU is the lack of a clearer commitment related to the climate issue and the preservation of biodiversity.

“I do not see as exclusive the vision that is being sponsored by the European Union and Mercosur, with the leadership of President Lula, and the developments that he (Macron) himself intends”, continued Haddad.

“What I said was that the Brazilian government understood that the agreement should be signed without prejudice to what President Macron pointed out, of establishing links between the production chains of the two regions, that is, deepening relations in a way that does not create a division interregional relationship between agriculture and industry. Do something more transversal”, concluded the Minister of Finance.

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Repudiation note

In a note released last Thursday (21), Brazilian agribusiness and food industry entities also criticized the statements made by Carrefour’s global CEO.

“If the Global CEO of the Carrefour Group, Alexandre Bompard, understands that Mercosur is not a worthy supplier to the French market – which is no different from the Spanish, Belgian, Arab, Turkish, Italian –, the undersigned entities consider that, if not it is used to supply Carrefour in the French market, it is not used to supply Carrefour in any other country”, says the document.

The text is signed by CNA (Confederation of Agriculture and Livestock of Brazil), ABIEC (Brazilian Association of Meat Exporting Industries), ABPA (Brazilian Animal Protein Association), ABAG (Brazilian Agribusiness Association), SRB (Brazilian Rural Society ) and FIESP (Federation of Industries of the State of São Paulo).