Argentina to Impose Retaliatory Tariffs on Brazilian Products

Brazil/Argentina frontier The government of Argentina announced it would slap anti-dumping tariffs for six months on gas compressors from Brazil, a decision which is expected to lead to new trade clashes among Mercosur largest members. 

According to a resolution in the Official Gazette, Argentina will apply a 38% levy on the FOB value of the questioned item, while Argentine authorities analyze claims presented by the local company MNC Refrigeration.

The Ministry of Industry argued that these imports from Brazil are harming Argentina’s domestic manufacturers of the compressors.

The resolution further argues that the Brazilian compressors “managed to take over 53% of the market, while domestic production was left with a 27% share”.

“We have sufficient evidence to preliminarily determine the existence of a dumping margin in the export to Argentina of the gas compressor units (except air), including those used by abattoirs, originated in Brazil”.

The report goes on to say that investigations from Argentina’s commerce officials indicate that imports of these products manufactured in Brazil “were introduced in Argentina at inferior prices to those of similar domestic production with a growing price-differential”.

Marcelo Modenesi, president of MNC Refrigeration said that his company is “in perfect conditions to substitute imports in normal competition conditions and to amply supply the domestic market”, according to the Argentine Ministry of Industry release.

Although Mercosur main partners and committed to develop a “strategic relation”, Argentina and Brazil have repeatedly clashed over trade. Argentina which is barred from international money markets needs to work with the so called double-surpluses, which mean positive performances with the national budget and the trade balance.

Whenever the trade surplus seems at stake Argentina has imposed deferred import licenses or other non-officially written measures to slow imports and keep a healthy margin.

Brazilian exporters have complained bitterly to their government and Brasília at times has delayed trucks at the border carrying Argentine food stuffs and other exports or applied similar deferred import licenses.

A precarious and complicated system was first agreed during the regular meetings of the two countries officials to address the issue, with Argentina allowed “to blow the whistle” whenever imports capture a domineering position in its domestic market.

Brazil demands that “its space” when such occasions occur, is not then filled with Asian imports (China).

This same policy has led to similar disputes with China, and one of the reasons for President Christina Kirchner visit to Beijing is precisely to try and lift the ban on Argentine soy-oil exports imposed in retaliation for Buenos Aires restrictions to Chinese imports.

The recent resumption of European Union Mercosur talks for a cooperation and trade agreement have been shadowed by EU claims that Argentina is applying “protectionist” measures against food imports from the EU.

EU officials have called for a review of the situation so as not to condition the EU/Mercosur trade talks.



  • Show Comments (6)

  • wiseman

    To Christ Cartesian (no nome de pai, filho e espirito santo)
    Herr Doktor, You are in good form! Definitely must be the french wine at the swimming pool along with some delightful ‘foreign’ company.

    I read somewhere that about 22% of the Swiss population is foreign born. I would like to know how these foreigners contribute to Swiss society & if most of them are highly educated & with special skills.

    Kindly enlighten me on this subject. Amen!

  • Hugo C

    And finally as I stated m few few times, CHC stands for Christ CARTESIAN !
    In your case, CH.C stands for CHildren.Can’t get a convicted child rapist extradited.

  • ch.c.

    futhermore for Anderson
    Who in your view is jealous against Brazil in the Mercosur club ?


    Because wether you like or not, Brazil is the second POOREST country on a GDP per capita in the Mercosur.
    Poorer than Argentine, poorer than Uruguay.

    And also poorer than Venezuela and Chili by the way !

    If you dont trust me just check by yourself and come back with comparative stats !

    Thus in my view it is Brazil that is full of jealousy and not the other way around as you pretend. And that explains Brazil arrogance toward the above mentioned neighbours.

    Anderson, before pretending an obvious NON TRUTH , you better check FIRST if right you could be…eventually !
    Idiots just like losers also pretend that they are right. Suffice to read your comments on Mercosur apparent jealousy toward Brazil.

    And finally as I stated m few few times, CHC stands for Christ CARTESIAN !
    It is not numbers or stats thatn drive my mind and analysis, but comparative numbers and stats.
    Everything else is either wrong or worthless or manipulated on purpose.

    And the Americas, North, Central or South are very good at manipulating stats and simple truths.
    I give you one example only for the USA.
    depending of the american “reliable” sources their debts to GDP is 62 %, other sources pretend about 75 %.

    But none of these “reliable” sources tells the sad truth.
    Sad truth being SUFFICE to watch the debts clock actually at about 100 % debts to GDP, and deficits growing at a much much higher speed than economic growth rate.

    And do you expect me to trust those pretending either 62 or 75 % ?
    They are just like you…pretending Mercosur and the World love Brazil !!!!

    Ahhhh….ahhhhhh !

  • ch.c.

    By the way Mercosur members and population love Brazil
    Just ask them FIRST !!!!
    There is not one of your Mefcosur club member with whom YOU dont have major problems. NOT ONE !
    Simply ask to Uruguayans, Paraguayans, Argentines and even Bolivians.
    Ohhhhhh and Chileans dont love brazilians either.

    Is that not simple and FAIR ?

    And more than doubtful, I or we the Swiss are jealous of your tens and tens thousands favelas !

    Ohhhh and with your “Mercosur members and population love Brazil” are you an officer of the BDA ?
    BDA standing for Brazil Dis-information Agency.
    They do occupy more than one floor at the Plana Alto PALACIO !

    Feel free to stay brainwashed. That is exactly what they expect from you and your co-citizens.

    LOSERS are always sure to be right over the decades. That is why they lose time and again and keep their thousands of slums and tens millions of poors !

    Ahhhh….ahhhh !

  • Anderson

    Who likes Brazil?
    CHC, no one likes anyone other then him/herself.

    Dont come here saying you have the answers… You seem like a Card reader who’s sugestions are always guesses.

    Just for you to know, Mercosur is not God, and what they think or do is not the actions of God. If they like us or not, it does not mean we did sin.

    Jealously sometimes is misinterpreted.

    By the way Mercosur members and population love Brazil, in fact people from all over the world love us, except on soccer terms, but I guess you think soccer is also God’s thinking.

    To register, the choice of a child is not the voice of God, neither is the voice of any jealous or not jealous person.

  • ch.c.

    Good Community and Friendships….THE MERCOSUR !
    Who likes Brazil ?
    Suffice to ask EVERY SINGLE country in the Mercosur or the UN-SUR CLUB !
    If Brazilians can count up to ZERO, they found the answer as to how many neighbours like them !

    Ahhhh….ahhhh…ahhhhh !

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