Brazil On Guard Againt Flood of Cheap China Trinkets

The president of the São Paulo Manufacturer Federation (Federação das Indústrias do Estado de São Paulo) (Fiesp), Paulo Skaf, says his organization will immediately set up a trade defense team to protect the sector as a result of the decision by the Luiz Inácio Lula da Silva administration to recognize China as a “market economy.”

Fiesp has officially stated its opposition to the decision claiming that it weakens the country’s trade defense mechanisms.

“We will monitor imports from China to identify any goods that spike. We will use all our resources to protect the Brazilian industrial sector,” declared Skaf.

By recognizing China as a market economy, Brazil will have trouble dealing with dumping by the Chinese no matter how talented government overseers may be, says Fiesp.

With the recognition, Brazil is now obligated to use Chinese domestic prices as the basis of comparison (instead of prices in other countries, which is the norm).

The problem with that is that China is really not a market economy, but a state-run, command-type economy, where prices are kept artifically low and do not reflect market realities, explained Skaf.

According to the Fiesp president, there will now almost certainly be a flood of Chinese imports washing up on Brazilian shores.

Agência Brasil
Translator: Allen Bennett



You May Also Like

Tit for Tat: Brazil Fights Back and Sends 8 Spaniards Back Home

Immigration officials in Brazil turned back eight Spanish tourists this Friday, March 8, a ...

Drop in Popularity Doesn’t Bother Him, Says Brazil’s Lula

Speaking to the press, Tuesday, September 13, in Guatemala, where he was attending a ...

Giovanna Maira, blind Brazilian singer

Blind Brazilian Singer Wins Young Soloist Award in the US

VSA arts (formerly Very Special Arts) announced Thursday, February 16, the recipients of the ...

Highways in Brazil: a Dead-end Road

Anyone entering a car, truck, or bus and driving on the Brazilian highways knows ...

Brazil Promising More Sugar and Coffee But Less Rice and Peanuts

In its second harvest estimate for 2006, which was released on Tuesday, March 7, ...

Brazilian Supreme Knocks Down Congress’s 91% Hike, But They Still Want It

The Brazilian Supreme Court (STF) granted unanimously, on Tuesday, December 19, a preliminary injunction ...

For the First Time, Brazilian Indians Have Chance to Shape Own Policy

Brazilian Indians themselves will show the way to a better Indianist policy. According to ...

Being and Becoming

Mario Quintana is probably the greatest poet in (at least) the history of his ...

Palestinians and Israelis Can Live Side by Side in Peace. Look at Brazil

BrasÀ­lia, the capital city of Brazil, paid two homages to the Palestinian people this ...

Brazil Solves Leather Residue Problem Turning It into Fertilizer

Tanning and shoe industries' leather residue, which have been an environment problem thus far, ...