Brazil Ready to Impose Sanctions on China

Imports from China have risen an average 57% in general, and up to 70% in some sectors this year, reports the executive secretary of the Ministry of Development, Ivan Ramalho.

Responding to complaints from the Brazilian industrial sector, especially textiles, the government is reportedly about to impose safeguards on imports from China.

If approved, in compliance with World Trade Organization norms, the safeguards on textiles will remain in effect until 2008. Other safeguards, in other sectors, will remain in effect until 2013.

However, the government will still discuss the issue with representatives from the industrial sector and investigate the matter based on those talks.

It is also possible that Brazil will negotiate the problem directly with China and avoid the need for the safeguards. Apparel makers demand limits on Chinese imports.

Apparel

The Abravesp (Associação Brasileira do Vestuário – Brazilian Apparel Maker Association) is calling on the government to limit Chinese imports, beginning this year. Abravesp wants to impose a ceiling on the fifteen main Chinese imports.

Under the proposal, the Chinese would be able to bring in only 1% of Brazilian production of any product in 2005. That quota would rise by 1 percentage point per year until it reaches a maximum of 15%.

The Brazilian clothing industry is bracing for a large influx of Chinese imports now that restrictions in international trade of textiles and apparel have been removed as part of World Trade Organization negotiations dating back over a decade.

ABr – www.radiobras.gov.br

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