After a Couple of Bad Years Brazil’s Footwear Industry Is Bullish

Shoe factory in BrazilBrazil and Argentina are expected to gather early February in Buenos Aires to assess how bilateral trade has been evolving and to plan the next steps to keep improving trade relations between Mercosur senior members.

The two countries have repeatedly clashed over the so-called non automatic import licenses, contemplated under World Trade Organization and which Argentina has stamped on several Brazilian sectors that complained bitterly to government demanding “reciprocal measures.”

According to Ivan Ramalho head of Brazil’s Development, Industry and Foreign Trade office a first meeting of technical staff will take place February 4 and the following day a ministerial meeting with the head of Finance, Guido Mantega and Foreign Affairs Celso Amorim.

“My perception is that there have been improvements in the issue of the of licenses for all sectors. There will be an assessment in February,” said Ramalho following the opening of the Skin and Leather fashion show in São Paulo.

Precisely the Brazilian footwear sector was one which suffered the most given the delay from the Argentine government in liberating the automatic import licenses, which according to WTO rules have a maximum time of 60 days, but Buenos Aires authorities in some cases went as far as 240 days.

The bureaucratic problem together with Chinese competition, have made Brazil loose foot in Argentina’s footwear market.

However following months the emission of licenses was normalized.

“We verified a greater expediency in Argentina. We can’t say it’s extensive to all sectors, but there has been a significant improvement,” said Ramalho.

According to the Brazilian Footwear Industry, Argentina purchased 12.9 million pairs of shoes in 2009 (up 10.2% from 2008) for which it paid US$ 142.4 million (10.5% over the previous year). Argentina is the second most important market for Brazilian footwear.

Brazilians have a strong leverage over Buenos Aires since they are the main trade partner for Argentina.

Meantime the Brazilian shoe sector is waiting for the final ruling regarding dumping claims against Chinese footwear.

“This is the final process which will then be assessed by the Chamber of Foreign Trade, probably in February. The sector has already managed to have a provisional anti dumping levy of US$ 12.47 stamped per pair of shoes. We want the levy increased to US$ 18.47 and have the levy extended for a five year period,” said Milton Cardoso president of the Brazilian Footwear Industry.

Ramalho said that normally when a decision is taken to apply provisional levies, “officials from the fair trade area usually have already concluded there are serious indications of dumping, with the possibility of serious damage for Brazilian industry.”

Ramalho said that the common external tariff on footwear imports to Brazil has been risen to 35%.

Cardoso claims the footwear sector in Brazil lost 42.000 jobs in the last quarter of 2008 because of Chinese imports. However in 2009, 30.000 jobs were recovered.

“The reaction has been so strong and prospects so good that we estimate that by 2011 we will have 400.000 jobs in the shoe industry,” added Cardoso.

According to Brazil’s Ministry of Labor, the shoe industry employed 327.000 people at the end of December 2009. This year the sector should expand 7.5%.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil to Export 3 Billion Liters of Ethanol This Year

The Arab Brazilian Chamber of Commerce is participating in the International Ethanol Workshop today, ...

Brazil’s Landless Want More than Just Land

Brazil’s landless movement, known as the Movimento dos Sem Terra (MST), is on the ...

Egypt Wants a Bigger Chunk of Brazil’s Oil Industry

Egypt plans to enter the list of great suppliers for the Brazilian petrochemical and ...

Investing in Environment Becomes a Trend in Brazil

Investments in environment are increasing in Brazilian companies. A study made by the National ...

Steel Production in Brazil Falls 9%

Brute steel production in Brazil totaled 4.707 million tons in the first two months ...

Mexican Entrepreneur Sees Brazil’s Poverty as Door of Riches

Mexican-based Grupo Salinas’s chairman, Ricardo B. Salinas participated in a plenary session addressing "Risks ...

Foreigners Shoot Brazil’s Stocks Up

Latin American stocks rose modestly, but nevertheless extended their streak of record closing highs. ...

Obama and McCain Duke It Out Today in Brazil in Mock Presidential Debate

A mock US presidential debate will take place today, October 10, from noon to ...

New Reservation to Repay Debt Brazil Owes Indians, Says Lula

On Friday, April 15, Brazilian President Luiz Inácio Lula da Silva signed a decree ...

Brazilian Arabs Mourn Arafat

The president of the Arab Brazilian Chamber of Commerce (CCAB), Paulo Sérgio Atallah called ...