Brazil Calls Protectionism Poison and Not a Cure

Presidents Kirchner and Lula The president of Brazil, Luiz Inácio Lula da Silva, admitted this week that trade with Argentina is "facing problems," but discarded specific measures against Argentine exports adding that any differences between the two countries "will be solved in Mercosur deliberations."

"If there's a problem with Argentina? There is. But we are going to sit around a Mercosur negotiation table to solve it, because that is the legitimate forum to discuss trade issues between both countries," said Lula talking to reporters in Brazilian capital Brasí­lia.

But "it's a mistake to believe that trade protectionist measures can help solve problems. We don't believe in protectionism, we're going to campaign against protectionism and we will reach all those agreements possible," emphasized the Brazilian president.

Earlier in the day Development, Industry and Foreign Trade minister Miguel Jorge also brushed aside the possibility of Brazilian restrictive measures on Argentine imports, "how can we think of imposing trade reprisals on one of our main associates? That's not going to happen."

On Tuesday the president of the powerful Sao Paulo Federation of Industries, FIESP, Paulo Skaf openly called for the Brazilian government to adopt similar restrictive measures to those imposed by Argentina against Brazilian exports.

In late January, Brazil tried to adopt a licensing system for imports before they are authorized and dispatched, which generated strong reactions from most Brazilian trade partners and was rapidly eliminated.

Next week, Foreign Affairs, Economy and Foreign Trade ministers from Argentina and Brazil are scheduled to meet in Brasí­lia, and in March Argentine president will be participating in a business seminar organized by FIESP in Sao Paulo. This will be one of the highlights of her coming official visit to Brazil.

On Wednesday Brazilian Foreign Affairs minister Celso Amorim described protectionism "as a venom and not a cure" for the current global financial crisis and warned that Brazil would appeal to the World Trade Organization every time it is needed "to prevent protectionism" from spreading.

Amorim said he understands governments have a duty to look after their people and jobs, but it is also "equally important that in the search of solutions to current problems, those leaders don't end creating greater problems to others which will ultimately backfire against them."

"For example it's useless for the US to insist with "Buy American," if other countries abstain from that approach," he added.

Amorim made the comments after holding a meeting with the Senate president Jose Sarney to review the main foreign policy issues for this year.

Mercopress

Tags:

You May Also Like

Russian Youngsters Learn Soccer with Brazilian Coaches

Russians are going to begin learning to play soccer with Brazilians later this year. ...

Indian Air Force Gets Brazil’s Embraer Jets

Brazil’s aircraft maker Embraer announced today the delivery of three specially configured Legacy Executive ...

Ten Facts Brazil’s President Should Tell the World Including GDP Doesn’t Equal Progress

In a debate at the University of Brasília, Ambassador Correa do Lago asked for ...

Brazilian Industry Says It Won’t Accept Increases in Bolivia’s Gas Prices

The president of the São Paulo Manufacturers Federation (Federação das Indústrias do Estado de ...

Brazilian Top Unions Blast Copom for Not Cutting Interest Rates

Brazil’s two biggest labor unions  in a note signed by their presidents,  have criticized ...

Economists Lower Brazil’s 2005 GDP Growth Forecast to 3.27%

Brazil’s industrial production is showing signs of losing ground relative to the growth achieved ...

Brazil’s Petrobras Keeps Its Place at Dow Jones Sustainability Index

Petrobras, the Brazilian state-controlled oil and gas multinational has maintained its share in the ...

Rapidinhas

Behavior All Naked   Candidate Fagotti went naked on TV Getting naked in Brazil ...

122 Million Brazilians to Vote in Mandatory Referendum on Guns

Everything is set in Brazil for Sunday’s (October 23) referendum on sales of firearms ...

Brazil on Course to Reach US$ 33 Billion Surplus

Brazil is very close to reaching the trade balance surplus forecasted for 2004. The ...