RESTRICTED TN.64/Me/W/24 GENERAL AGREEMENT ON 11 October 1966 TARIFFS AND TRADE Special Distribution

Group on Original: Spanish

URUGUAY

The following information has been submitted by the delegation of Uruguay in accordance with the programme of work laid down in document TN.64/Me/5.

I. Existing policies

(i) Support prices; guaranteed prices, guide prices, intervention prices (indicating differences according to type of meax or )

There is no policy of guaranteed prices or support prices applicable to meat of any kind (beef, mutton, pork, poultry meat, etc.)

(ii) Market prices for cattle; yearly average

Cattle Year Bullocks in general

(in US cents per kg. liveweight) I960 1S.0 18.6 I96I 14.3 15.9 1962 ISO 15.6 196p 11.0 12.9 1964 13.4 14.9 1965 11.4 12.4

(iii) Total producer's return per kilogramme liveweight, including assistance and subsidies

Cattle Year Bullocks in general (in US cents per kg. liveweight) I960 14.5 15.0 1961 11.5 12.8 1962 12.3 12.6 1963 8.8 10.4 1954 10.8 12.0 1965 9.0 10.0 TN.64/toe/W/24 Page 2

The above prices represent the producer's return including subsidies on the marketing of younj cattle, which were abolished on 30 May 1965.

(iv) Inventory and costs of aids and subsidies of every type which may influence production and returns to producers

At the present time there are no subsidies of any kind on production or exports of beef.

(v) Total quantity and value of production

No. of head Livoweight Value of production Year ('000) (tons) (in current US$'000)

I960 1,513 620,753 - 90,009 I96I 1,6S3 681,397 78,361 1962 728 373,295 45,915 1963 1,644 660,329 58,109 1964 1,668 673,861 72,993 1965 l,626(a) 660,300 59,427

(a) Preliminary estimate subject to adjustment.

(vi) Analysis of measures at the frontier: specific and ad valorem customs duties and charges on imports ; variable levies ; tariff quotas and quantitative import restrictions ; other restrictions to imports or to the sale of imported goods ; fees paid on account of administrative import formalities

Cattle for consumption (liveweight)

Calves, heifers, cows, bullocks, bulls and steers.

Ad vaïdreiï!" - duties 12.12$ 2.2725$ surcharge: consignment: 100$ 15.15$ Total: 29.5425$ on c.i.f. value TN.64/1VIe/Vl/24 Page 5

Slaughtered beef

Fresh:

Ad valorem - 8H .84% 2.2725$ surcharge: 225$ prior deposit: 200% 12.15$ consignment: 100$ Total: 102.2725$ on c.i.f. value

Chilled or frozen:

Aforo: K.G.$5.07 - duties: 115.14$ on aforo - 225$:- surcharge - 200%: prior deposit - 100%: consignment

Other: 2.2725$ on c.i.f. value 15.15$ on c.i.f. value

Total: 17.4225% on c.i.f. value

Meat, salted, dried, smoked or simply preserved (other than meat imported in boxes, tins, jars, ''tierras" or air-tight containers)

Salted meat, in casks, and other: dried, smoked or simply prepared in any other manner:

Aforo: K.G.$6.084 - duty: 115.14% on aforo - surcharge: 225$ - prior deposit: 500$ - consignment: 100$

Other : 2.2725$ on c.i.f. value 15.15$ on c.i.f. value Total: '17.4225$ on c.i.f. value

Consular duties: the total is equivalent to approximately 12 per cent of the c.i.f. value. TN.64/toe/W/2i' Page 4

II. Incidence on moat production of policies on cereals and dairy products

(i) Estimated volumes and prices of cereals used for intensive fattening of cattle with a breakdown showing type of cereal and origin

In Uruguay cereals are not used to fatten for commercial purposes. This type of feeding is used only for breeding animals. In 1963» demand for concentrated feedingstuffs for breeding cattle and sheep was approxi­ mately 8,000 tons.

(ii) Evolution of ratio between cereal prices and fat cattle prices

Year Cattle/wheat Cattle/maize

I960 3-57 2.17 1961 2.38 2.56 1962 2.44 2.04 1963 1.85 2.12 1964 1.96 1.88 1965 4.76 2.56

(iii) Total producer's returns for milk, including assistance and subsidies

Year Price (in US cents)

I960 4.6 1961 5-4 1962 6.0 1963 5.4 1964 4.6 1965 3.5 TN.64/Me/W/24 Page 5

These prices include bonuses for establishments in the valley supplying Montevideo which have installations and stockyards in good sanitary conditions.

(iv) Evolution of ratio between the prices of fat cattle, liveweight basis, and milk price

Year Cattle(b)/Milk(a)

I960 3-22 1961 2.3& 1962 2.08 1963 1.92 1964 2.63 1965 2.85

(a) Prices per litre to producer

(b) Prices for fat cattle

(vi) Comparative evolution of xhe dairy cattle herd and of the intensively fed beef herd m relation to total cattle herd

The evolution of the beef and dairy herd has been as follows (in thousand head):

Year Beef cattle Dairy cattle

1957 7 n^ - 652.2 1958 7,181.7,0c^.u6 648.4 1959 7,483.4 644.6 I960 7,809.2 640.8 1961 8,155.4 637.0 1962 8,495.9 663.I 1963 8,224.1 641.3 196^ ',5-2.0 645.0 1965 o,357.0 643.0

As may be seen from the above figures, the dairy herd has been declining in relation to the beef herd, having fallen from 9-2 per cent in 1957 to 7.5 per cent in 1965.

As regards the intensively fed herd, as already mentioned in paragraph II(i) this type of feeding is reserved solely for breeding animals. TN.64/Me/W/24 Page 6

N.B. The number of breeding animals is estimated on the basis of the number of registered pedigree animals, marked as such. For 1964 and 1965. it is estimated that there were 6,000 head of sheep and cattle for breeding requiring special feed rations.

III. Internal prices

Information on the levels of internal prices for bouf and per kilogramme of carcass, in the most representative markets or cities

(i) Wholesale price

Year US cents per kg.

1963 28.9 1964 34.3 1965 21.0

(ii) Retail prices for beef (In US cents per kg.)

Year 1 Plank meat for stewing

1963 47.0 22.6 1964 57.8 25.9 1965 42.2 21.1

(iii) Costs of marketing

In studies carried out in the year 1962, the marketing margin was found to be 22 per cent of the average price paid by the consumer. TN.64/Ma/W/24 Page 7

(iv) Charges on sales of meat, etc.

" • - •••• Charge US cents per animal

Transmission charge for livestock products 1.5 per cent at a price of 1.60 par kg. 21.7 Landing certificate charge , approximately 6 pesos per head 12.0 Stamp duty- 5-8 Single charge, 0.0041 pesos per kg. 3-7 Charge for the national cold storage depot, 0.0006 pesos per kg. live-weight 5.4 Special charge (law of December 196l)0.1 per cent 1.4 Sub-total 50.0 Social benefits and other services: Contribution to the Unemployment Fund of the refrigeration industry, 0.0002 pesos per kg. liveweight 1.8 New year bonus for 1961 (outstanding) 0.5 Pension fund 0.1 Sub-total 2.4 Commissions: Sales commission, 1-gr per cent on l60 pesos 21.7 Total costs 74.1

IV. International prices

(i) Informâticn on the levels of international prices prevailing

Exports of all types of bovine meat are subject to "aforos" - a lump-sum value fixed for purposes of levying certain taxes and charges.

The "aforos" at present applying were approved on 17 May 1966 and are as follows for the various markets:

SHIPMENTS TO THE UNITED KINGDOM US$ per ton f.o.b. Chilled meat

Young beef, hindquarters 570 Young beef, forequarterf: 370 TN.64/Me/w/24 Page 8

Frozen meat US$ per ton f.o.b.

Young beef, hindquarters 570 Young beef, forequarters • 370 Cow meat, compensated quarters 470 Foreribs 540 Loin of beef (fillet) 740 Crops 450

Lamb 500

Sheep

Liver 680 Kidney 460 Sweetbreads 770 Heart (lamb) 400 Heart (sheep) 310 SHIPMENTS TO ALL DESTINATIONS (EXCEPT UNITED KINGDOM)

Chilled meat US$ per ton f.o.b,

Beef, Continental, sides 530 Beef, Continental, hindquarters 660 Beef, Continental, forequarters 400 Hindquarters, pistol cut (three ribs) With shank 800 Without shank 83O Hindquarters, pistol cut (eight ribs) With shank 730 Without shank 770

Frozen meat

Beef, Continental, sides 520 Beef, Continental, hindquarters 65O Beef, Continental, forequarters 390 Hindquarters, pistol cut (three ribs) With shank 700 Without shank 750 Hindquarters, pistol cut (eight ribs) With shank 630 Without shank 67O Beef, with bone, Continental type cow, B/F quality 500 TN.64/Me/W/24 Page J

VSP per ton__f_._o_.b_. Frozen meat Processed beef, boned, sides 700 Processed beef, boned, hindquarters 820 Processed beef, boned, forequarters 5-30 Processed beef with bone, sides 500 Processed beef with bone, hindquarters 620 Processed beef with bone, forequarters 380 Processed bull meat with bone, sides 570 Processed bull meat, boned, sides 680 Processed veal, boned 860 Processed veal with bone 660 Sheep carcasses, with bone 285 Lamb carcasses 500 Jerked beef 950 Crops 450 Round 730 Rump and loins 900* Legs of lamb, frozen 520 Mutton sides (boned) 540 Mutton, hindquarters (boned) 600 Mutton, forequarters (boned) 480 Frozen beef cuts ("Triminga") 500 Head meat 550 Rump 765 Silverside 765 "Peceto1' 765 Round 765 "Tortuguita" 765 Loin, boneless (fillet) 800 Loin with bone 700 Haunch, boneless 800 Haunch with bone 700 Flank 620

Frozen beef offals

Liver, industrial 250 Jaws 550 260 Spleen 120 Brains 600 Udders 240 Tongue 530 Tendons 150 Labia 300 Honeycomb tripe 300 Oesophagus meat 520 Lower jaw (without meat) 300

Since 10 July 1966. TN.64/Me/w/24 Page 10

U8$ per case or box Preserved meat Meat extract 7.70 24/l2 No. 1 6.5D 24/12 No. 2 6.00 48/12 No. 1 13.00 48/12 No. 2 12.00 12/6 No. 1 20.50 12/6 No. 2 17.00 12/3 No. 1 10.50 US$ per ton f.o.b. Frozen beef offals Liver 450 Kidney 500 Heart 450 Tail - bags and/or boxes 250 Swe e tbre ads 600 Tongue 920 Loin, weighing not more than 5 lbs. (bags and/or boxes) 1,500 Loin weighing 4/5 lbs. (bags and/or boxes) 1,200 Loin weighing 2/4 lbs. (bags and/or boxes) 820 Entrails 500 Shank meat 550 US$ per case or bo> Preserved meat Corned beef 12/3 No. 2 8.75 6/5 No. 1 9.60 6/6 No. 1 10.25 6/6 No. 2 8.50 6/4 No. 1 7.00 beef 12/4 22.00 24/12 7.00 6/4 7.25 24/12 (in sauce) 6.50 6/4 (in sauce) 7-00 6/6 (in own natural juices) 10.75

SHIPMENTS TO UNITED STATES (excluding United Kingdom) US$ per ton f.o.b. Frozen cooked beef (packed in boxes) 950

SHIPMENTS TO ISRAEL (excluding United Kingdom) Frozen meat US$ per ton f.o.b. Kosher beef forequarters 420 TN. 6 VMe/w/24- Page 11

(ii) Data on the conditions of price formation In International markets; comments on the feasibility of establishing prices for these products figuring in international trade and the legal possibilities of main­ taining such prices

Information on international prices is in genera.1 obtainable from specialized publications and despatches from agencies specializing in such matters. The latter communicate terms of demand and prices in the principal markets, it being easy for beef exporters to obtain this kind of information.

In addition, there are legal possibilities for maintaining such prices.

(iii) Concrete data on export subsidies and export aids; global values and quantities , and, values per unit

At the present time there are no export subsidies of any kind, the following charges being levied instead:

Beef of any kind, __, - ., 1.15$ patent and 2% charge on ad valorem . ,.' . . , „ Q cut up and boned J5/° statistical charg e c.i.f' . valu n e

Preserved beef 0.01 idem idem

(iv) Information on cold-storage capacity

In 1962, cold-storage capacity in Uruguay was more than j50>500 tons of beef carcass, to which may be added a number of establishments for selling chilled or frozen meat without any specific destination and the former Swift plant which is at present inactive, bringing the total to more than 67,000 tons. This capacity, which in 1962 was already considered sufficient for the next ten years, should be considered as being much greater now.

V. Bilateral agreements affecting imports and exports

At the present time, Uruguay is not a party to any bilateral agreements which per se constitute a limiting factor for exports or imports. TN.64/Me/w/24 Page 12

VI. Data on production, imports, exports and consumption of beef and estimates for 1970» on a standardized statistical basis

Data on production, domestic consumption and foreign consumption.

Meat Exports, i Imports, Variation Total Year Domestic live live Exports in stocks production consumption animals animals (in thous;in d tons, dressed weight)

1961 207.1 68.6 - 1 85.7 361.4 1962 184.5 85.6 3.1 ! -75.4 197.8 1963 198.4 97-3 ... 54.0 349.7 1964 153-1 160.7 - ... 44.4 358.2 1965 148.0 104.7 — ... 97.3 350.0 __

Structure of Beef Exports - 1965

(in thousand tons, dressed meat) Chilled carcasses 10.6 Frozen carcasses, with bone 40.7 Boned meat 22.7 Preserved meat 30.7

Total in terms of standardized units* 104.7 . . ... Dressed beef.

VII. Trends in total per caput consumption of all types of meat including estimates for 1970> in relation to available income, retail price and percentage of consumer expenditure devoted to meat

Consumption- Thousand tons liveweigfrt Per caput consumption Type of elasticity (kg. dressed weight) meat coefficients 'Î96'3' 1967 1970 'Ï974 ' "1963 I 1967 , I97O 1" 1974 All meat 0.14 102.8 103.0 101.7 101.4 Beef and I veal 0.1 377.0 394.9 399-6 412.7 75.4 75-2 73-4 72.2 jMutton and lamb 0.2 105.7 107.8 109.6 111.6 18.0 17.8 17.5 17.0 Pork 0.4 26.5 28.6 30.8 34.2 8.0 8.2 8.5 9.1 Poultry 0.8 5.4 7.0 9-3 13.3 1.4 1.8 2.3 3.1 TN.64/Me/w/24 Page 13

VIII. Sanitary or veterinary regulations affecting the level of beef imports

The legislation in force includes sanitary or veterinary regulations for the prevention of certain diseases affecting bovine animals, but they do not affect the level of any imports.

IX. Import policies for live cattle

Uruguay's production is sufficient to meet all domestic requirements of this product, while leaving substantial surpluses available for export.