The president of Brazil’s National Confederation of Industry (CNI), Armando Monteiro Neto, urged the Brazilian government to adopt anti-dumping measures and safeguards to curb the entry of Chinese products into Brazil.
At a meeting this Thursday, May 5, with the Ministers of Finance, Antônio Palocci, and of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, he contended that “Brazil must effectively deal with this matter, and there can be no delay; it has to be something defined soon. Brazil stands to lose jobs in this area, and this is a matter of concern.”
Monteiro observed that imports of manufactured goods are growing exponentially. Around 90% of Brazilian purchases fall into this category, whereas manufactured items represent only 20% of Brazil’s exports to China.
The fact of Brazil’s having recognized China as a market economy State, according to the CNI president, demands a compensatory position now on the part of the government, to protect domestic industry.
“This relationship with China acquired a more political connotation. But now the consequences of this competition in specific sectors of Brazilian industry call for effective government action,” he said.
Brazilian industry, he went on to say, is unable to compete with Chinese industry, on account of the heavy social costs of labor, as well as Brazil’s more appreciated currency and higher interest rates.
The CNI president also said that the Ministers expressed concern over this matter.