• Categories
  • Archives

Brazilian Industry Calls Chinese Competition Unfair

The Brazilian heavy equipment industry complained to the Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, about “unfair competition from Chinese products.”

The president of the Brazilian Association of Machinery and Equipment Industries (Abimaq), Nilton de Mello, said that he counted on the comprehension of the Minister, who promised to transmit some of the complaints, which refer to tariffs, to the Ministry of Finance.


The Abimaq complains of finished Chinese goods that arrive in Brazil underpriced, often for less than the per kilogram cost of raw steel, “an unequivocal proof of fraud and underpricing.”


Regarding tariff collection, Mello cites the example of pumps, reducers, and valves, which, according to him, may be small objects or large-scale devices and are classified generically by the Ministry of Finance.


The heavy machinery industry also requested that accumulated ICM and export credits be restituted, a grievance that goes back many years.


Another of the Abimaq’s demands is to extend the redemption period for export contracts (in which payment is in foreign currency) from 180 days to 360 days or more.


The Abimaq revealed to the Minister of Development the damages the sector is suffering from the overvalued exchange rate and annual interest rates at their current level.


“We are in need of emergency measures, because export channels are being closed for us, as well as the domestic market,” Mello said.


The government’s measure exempting steel imports from duties, according to Mello, only benefitted the automobile industry.


He expressed the opinion that the government’s high overnight benchmark interest rate (Selic) attracts speculative capital, “which leaves here with a profit and tax exemptions and also helps weaken the value of the dollar.”


Agência Brasil

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Your email address will not be published.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

Bribery Charges Hit Brazil’s Finance Minister and Markets

Latin American markets were mixed to lower on the day, as Brazil posted another ...

Brazil-Argentina War Really Bad Only in the Soccer Field

The Argentinean Industrial Union (UIA) called for sweeping changes in the Mercosur and demanded ...

Brazil-EU Summit to Be Held in Rio, in December

Brazil and the European Union are going o promote their second joint summit on ...

500 International Investment Experts Get Together in Brazil

Global tendencies for capturing investments, the liquidity of paper in capital markets, corporate perspectives ...

World’s Largest Ethanol Maker Take Over of Exxon Brazil Is a Surprise

Cosan, a Brazilian company and the world's largest sugar and ethanol processor announced it ...

September 1994

CONTENTS: Cover story: Picking up the president (p. 8) A whale of an election ...

Bulls Stampede in Brazilian Market: Stocks Jump 13.42%

After five days of steep decline the Brazilian market went into extremely high gear, ...

Brazil Takes to Middle East Know-How to Extract Oil from Rock

Brazil's state-controlled oil multinational Petrobras is looking at opportunities in the schist sector in ...

Arrogance and Press Bashing at the Root of Dilma Rousseff’s Fall from Grace in Brazil

In Brazil, political analysts are trying to explain why Brazilian presidential elections went sour ...

Tough Choice

The Landless Movement in Brazil is a success. One quarter of a million people ...