Brazil and Argentina Try to Diffuse Tension in Their Bilateral Trade

Boudou and MantegaArgentina and Brazil made significant advances in outstanding bilateral trade issues following a joint meeting between top policy makers from both countries, Brazilian Finance Minister Guido Mantega told reporters.

The meeting, in Brazil’s industrial hub of São Paulo, was jointly chaired by Mantega and Argentine Economy Minister Amado Boudou.

The two ministers announced the creation of a US$ 100 million fund to offer financing to Argentine companies engaged in trade with Brazil. Financing will come from government agencies of both countries.

Creation of the fund came on recognition that Argentina frequently has been at a disadvantage in its trade with Brazil, in part because the size of the Brazilian economy has permitted more economies of scale for Brazilian companies.

Argentina is Brazil’s third-largest trading partner behind China and the US. In the first five months of 2010, Brazil posted a trade surplus of US$ 442 million with Argentina. Brazil is Argentina’s main trade partner.

Both tariff and non-tariff barriers have been a point of tension between the two countries. In recent weeks, Brazilian exporters have complained about possible barriers to some products exported to Argentina, including food products and some manufactured goods.

Argentine importers said the barriers were very real, but have been easing lately. The Argentine government eased restrictions after the importers agreed earlier this month to use local currencies for all transactions, rather than dollars or euros, as has long been the practice.

“The situation is normalizing” now, but the informal and arbitrary way that imports had been shut down is worrying, said Miguel Ponce, the spokesman for the Argentine importers’ chamber Cira. Argentine officials used bureaucratic snafus at the food import certification agency to stall the cargos, Ponce said.

Last week’s meeting was designed, in part, to defuse bilateral tensions regarding such rumors.

Boudou said: “From time to time, there are some problems in our trade relations, but we are working to remove them.”

Brazilian Trade and Development Minister Miguel Jorge said: “We advanced on the trade issues at today’s meeting. The remaining issues are very small”. But ministers declined to discuss details of the discussions.

Boudou said increasing bilateral trade was critical “in helping both countries to surmount crises, such as the recent global crisis.”

Jorge said officials of both countries were especially interested in boosting trade in the areas of oil and gas, auto parts, aviation equipment and farm equipment.

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

Blame the victims

If someone offers his condolences and, right after, adds some however, though or but ...

Brazil’s Veja Gives Another Show on Bad Journalism and Bigotry

Veja magazine’s (number 1925, October 5, 2005, pp. 78-86) latest cover story, under the ...

Brazil Coaxing Russia to End Presto Its Embargo on Brazilian Meat

Brazil is in Moscow to discuss Russia’s resumption of pork and beef imports from ...

Brazilian Popular Culture Gets Boost from WSF

Based on the debates at the World Social Forum, which gets underway tomorrow, January ...

We Are All Brazilians, All Mixed, and Racists All the Same

From the end of the 1930s till his death in 1995, the anthropologist Ashley ...

Brazil’s Petrobras Picks FMC as Undersea Supplier

U.S.-based FMC Technologies, Inc. announced April 20 that it has been chosen to supply ...

Senator Marina Silva gets prize in the US

At 16, when disease forced her to go to the city, rubber-tapper Marina Silva ...

English for Brazucas

Of the kitchen appliances, one is—or used to be—more popular in Brazil than in ...

Brazilian Protesters Take to the Streets. They Are Fed-Up Farmers.

Thousands of small farmers took to the streets in several Brazilian cities to protest ...

In Brazil, Finding a Replacement for the Agonizing Democracy

In the Brazilian magazine Caros Amigos (Dear Friends), one of the last bastions of ...