Brazil Starts Barring Cheap Chinese Goods

On Wednesday, June 2, Brazil's Ministry of Development, Industry, and Foreign Trade will hold its first formal meeting to implement the process of safeguards against Chinese imports, as determined by the government last week.

The first step will be taken by the Executive Management Committee (Comitê de Gestão da Câmara de Comércio Exterior, Gecex), responsible for evaluating impacts and supervising and deciding on improvements in any measure related to foreign trade.

This according to information from the executive secretary of the Chamber of Foreign Trade (Câmara de Comércio Exterior, Camex), Mário Mugnaini.

He said that, in fact, the government is just regulating a mechanism available in the World Trade Organization (WTO) and already adopted by the United States, the European Union, and Argentina.

According to Mugnaini, the intention is to provide continuity to the talks already maintained with Chinese government officials and monitor the entry of products from that country.

The executive secretary of the Camex said that shoe and textile manufacturers are complaining the most about cutthroat competition from Chinese products.

He pointed out, however, that the application of safeguards (in the form of higher customs duties) is not automatic.

The sectors that feel they are being hurt should seek the Trade Defense Department (Departamento de Defesa Comercial, Decom) in the Ministry of Development and substantiate the alleged damages.

"The sectors are the ones that decide whether or not to make use of the safeguard mechanisms; and if imports are reduced, it is even possible that they will be unnecessary," Mugnaini emphasized.

Agência Brasil

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