Hopes are soaring within Argentina's cattle industry following a proposed agreement with the United States that could significantly increase beef export quotas and reduce tariffs.

The potential deal, championed by former President Donald Trump and welcomed by current Argentine President Javier Milei, has sparked optimism among feedlot owners and meatpackers, despite some concerns from U.S. domestic producers.

The proposed agreement would quadruple the current quota, allowing Argentina to export 80,000 tons of beef to the U.S. at a preferential tariff rate of 10 percent. This is a substantial increase from the current allowance of 20,000 tons at the same rate, with any additional exports facing a considerably higher 36 percent tariff.

The prospect of greater access to the lucrative U.S. market comes as a welcome relief to a sector that has, according to economist Martín Kalos, been "severely affected in recent decades by a complete lack of public policy."

Kalos, director of EPyCA consulting, emphasized that "any announcement that involves being able to export more at a better price, in this case with lower tariffs, will be welcomed." He noted the industry's eager anticipation for confirmation of the deal.

Juan Carlos Eiras, a feedlot owner and Director at the Argentine Chamber of Feedlots, described the news as "very good."

He believes it could "balance some of the scales between different countries (that Argentina exports to) and their volumes," and highlighted the strategic importance of the U.S. market, stating, "it's always good to sell to the United States, which is a large country. Let's understand that the United States and Argentina are the two largest consumers of beef in the world."

Last week, President Milei, speaking at the America Business Forum in Miami, publicly thanked former President Trump and his administration for "reaching an agreement, for the quota of Argentine meat four times higher than the previous one." He characterized this as "just one of the trade agreements that Argentina and the United States have owed each other for many years."

The proposal also helps U.S agriculture with a statement sayin that "Argentina has opened its market to U.S. live cattle, committed to allow market access for U.S. poultry within one year, and agreed not to restrict market access for products that use certain cheese and meat terms." The statement also said the two countries are working together to smooth barriers to trade.

While the proposed quota increase to 80,000 tons has been met with widespread enthusiasm in Argentina, concerns have been voiced by U.S. domestic producers regarding the potential impact on their markets.

However, Román Mengani, owner and director of the Frigolar meatpacking plant in La Plata, expressed confidence in the quality and market reception of Argentine beef.

"We believe that the Argentine product, if the quota is extended to what they say could be 80,000 tons, time will tell if it really has an impact that harms local plants in the United States," Mengani said. He ultimately believes that "will not happen with such an impact."

AP Video shot by: Victor R. Caivano