Brazil Gives Argentina the Ice Treatment Blaming Argentinean Bad Faith

Presidents Kirchner and RousseffBrazil has virtually frozen political and economic relations with Argentina following serious discrepancies that were confirmed during the recent summit of presidents Cristina Fernandez with Dilma Rousseff who cut short the originally scheduled two-day visit to Buenos Aires.

The bilateral conflict exposes billions of dollars of investments from Brazil, which also happens to be Argentina’s main trade partner, since the government of Cristina Fernandez has not complied with any of the understandings reached in previous meetings referred mainly to limitations, restrictions and other obstacles implemented by the Argentines.

But this time also, according to Argentine and Brazilian diplomatic sources quoted in the Buenos Aires media, there were serious questionings towards Cristina Fernandez latest political decisions ‘on the path of the late Venezuelan leader Hugo Chavez’, the main of which, judicial reform and the advance on the media.

Apparently Dilma Rousseff brought along messages of concern both from the United Nations (later made public) and from the US government.

Brazilian Foreign minister Antonio Patriota held very private meetings with the main representatives from Argentina’s manufacturers’ organization, (Argentine Industrial Union), involved in the bilateral trade to inform them of the seriousness of the current situation.

“Formally the presidential meeting was cordial, but there were no advances in the agenda and the officials below Cristina Fernandez did not address any of the pending issues,” Patriota told the Argentine manufacturers.

“The Brazilian government tolerance is over,” UIA outgoing president Ignacio De Mendiguren reported to his peers at an urgent meeting.

This was clearly confirmed when president Rousseff, “did not spend the night in Buenos Aires as was scheduled and left immediately back to Brasília”.

However Rousseff was not entirely negative and before leaving stated that the two countries must rebuild “the spirit of Cardales,” a summit promoted by De Mendiguren when a similar situation was forecasted but was finally averted as the two sides sat down to seriously negotiate.

To please the Brazilian leader, Cristina presented for the talks her whole cabinet with the exception of Domestic trade minister Guillermo Moreno, who with the support of government openly bullies and threatens corporations and business people.

Earlier in the year, in a meeting in Brazil to address auto industry complementation issues Moreno tried the same tactics but was stopped. The head of Brazil’s National Industry Confederation is alleged to have sternly said: “These methods were not even used under Stalin or the Soviet Union; we will not tolerate them”.

However Cristina Fernandez last November has personally promised Dilma that the controversy with the Vale potassium development, a 6-billion-dollar investment, would have an economic and not a political solution, including a positive result for the fiscal incentives promised.

None of this happened and Vale has left Argentina after sustaining death threats to their top staff, and paying for redundancies, plus hopes of recovering the US$ 3 billion invested by some potential more audacious corporation.

Brazil’s main disappointments with Argentina include the surge of authorized imports from China, 8%, while Brazilian imports were frozen down 17% in the same period.

The lack of an agreement on the auto-parts controversy: Argentina insists in a surplus in the bilateral relation in this item, to which Brazil was willing to listen. But contrary to promises there have been no Argentine proposals but rather suggestions for an extension of the current questioned regime.

Mercopress

 

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  • Lloyd Cata

    Phoney Imperialists
    Mrs. Rousseff should understand that she is not Mrs. Merkel. Certainly it is in Argentina’s ‘interest’ to have good relations with its powerful(sic) neighbor, but Dilma does not set Argentine economic or gtrade policy.

    As long as Brazil has been ripped-off by Euro-trash economics, and US ‘mandates’, it still plays the Game of Hegemony for South America. Certainly bowing to “interests-outside-the-region” to pressure its neighbor.

    As I have said previously; “President Rousseff is sometimes clumsy, prone to acting with a heavy hand”. Maybe she subscribes to the ‘new’ Facism of Paraguay, rather than the conduct of neighbors(?)

    ….oh, and she’s not Hillary Clinton either(!) B-b-but since Benghazi, Hillary is now learning the consequences of scheming and lying.

  • Tim

    Argentina Brazil relations
    Argentina failed before, and they are doing it again, yet those involved blame everyone else for their own incompetence. They see this as an insult while other people see the slippery slope that Argentina is on. This has got very little to do with Brazil, or any other place, only the crazy policies of politicians in Argentina.

  • Lloyd Cata

    Imperial Edicts, Brazilian Corruption, Argentine Nationalism
    Too, too funny!! Brasil brings ‘orders’ from the “high command” at the US/UN. What nonsense to bring to your neighbors house. Dilma should have stayed home if she intended to insult her host(!)

    The Brazilian people themselves were ripped off by Vale at the start of its sordid ‘privatization’ that was more corrupt than a FARC crack dealer. This is what happens when multi-nationals are allowed to ‘own’ national resources.

    Argentina is still trying to recover from the fallout of its economic rape by the Capitalist Agenda(@uschamber), which did ‘use’ Brazil as a springboard to expand hegemonic business practices. Brazil would do well to not follow its past practices with respect to its neighbors. You are not yet the Hegemon-of-the-South(!)

    If Dilma wants to ‘negotiate’ the terms of trade she should do it within the framework of Mercosul, instead of bringing ‘opinions’ from those outsiders who wish Argentina no good. To try and tie Cristina to Chavez is a media tactic that comes from the US tabloids. Perhaps Dilma should remember where her beans came from when the Capitalists had her on the run, and not be such a hypocrite for US favors.

    8% Chinese increase, 18% Brazilian decrease in trade may be due to the realignment of Argentine trade, but to use past “Brazilian Imperialism” to force Argentina back into the global imperialism of US/UN edicts is not a sign that Brazil is serious about leadership in Latin America.

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