Brazil-Argentina Common Worry: Made-in-China Products

Made in China According to Brazilian sources, Brazil and Argentina have established a standing consultation round to monitor the strong increase in Chinese imports by Brazilian and Argentineans, which is causing concern in both countries manufacturing sectors.

"We're concerned because the increase in imports from China and other Asian countries could impact on specific sectors or our economies," said Brazilian Development Minister, Ivan Ramalho, whose office is in permanent contact with his Argentine counterpart Industry Secretary, Fernando Fraguí­o.

The announcement was made following the regular bilateral meetings to address trade issues, exchange information and solving differences that could emerge from the almost US$ 30 billion annual commerce between Argentina and Brazil.

The purpose of the consultation round is "to identify problems that could lead to an increase of Asian imports and try to find a joint approach to the particular issue and correct it."

In 2007 Argentina and Brazil sales to China increased 49% and 28%, respectively, while imports from the Asian giant soared 63% and 58%. Brazil has become Argentina's main trade partner absorbing 19% of exports, followed by China with 9%. While Brazil has become Argentina's main provider (32%) followed by US (12%) and China (11%).

One of the issues on which both countries agreed at the last meeting was to normalize wheat trade, which has been hampered because Argentina since 2007 is restricting exports so that soaring world prices do not impact in the domestic market. Brazil is Argentina's main purchaser of wheat.

According to the understanding Argentina made an immediate export release of 902.000 tons of wheat, to which must be added another 500.000 tons in the coming months. Brazil because of the recent Argentine restrictions was forced to lower wheat tariffs for third countries. In the last months Brazil has been buying Canadian grain.

Ramalho said the decision will enable Brazil to have no further wheat supply problems for the rest of 2008 and the operation will also help to balance the Brazilian surplus in bilateral trade.

"Brazilian importers will go for the Argentine wheat because of its premium quality and lesser transport and logistic costs," added Ramalho.

In the first half of this year trade between Argentina and Brazil reached US$ 14.8 billion with a US$ 2 billion surplus for Brazil, "which means we should be close to US$ 30 billion by the end of 2008, a 35% increase," pointed out Ramalho.

The Brazilian official also underlined the growing number of Brazilian companies which are choosing Argentina to invest.




You May Also Like

Brazil’s Trial of the Century Might Prevent Lula from Running for Prez a Third Time

Seven years after a corruption scandal rattled the government of former Brazilian president Luiz ...

Brazil and South Korea Urge North Korea to Restart Nuclear Talks

The Presidents of Brazil, Luiz Inácio Lula da Silva, and of South Korea, Roh ...

Amazon’s Kindle Now Has the New York Times and Brazil’s O Globo

Among the three largest and most influential Brazilian newspaper Brazil's daily O Globo this ...

Appeals Court in Brazil Overturns US$ 13 Bi Judgement Against Philip Morris

In Brazil, the 7th Civil Chamber of the Court of Appeals of the State ...

Brazil and UN Peace Mission to Remain in Haiti Past the Election

The head of the UN  peace mission in Haiti (Minustah), the Chilean diplomat, Juan ...

Souza’s Sonic Quilt

Brazil has had to pursue their space dreams alone and against the opposition from ...

Brazil’s New Varig First Day: All Flights Cancelled, Good News from New York

Varig, Latin America’s oldest airline, averted liquidation as its former cargo unit agreed to ...

Brazil’s Natural Gas Fleet Close to 1 Million

Prior to the end of 2005, it is possible that the target set by ...

In Brazil, Bodies Are Personal Billboards

For thousands of Brazilians, driven by advertising and the cultural industry, the meaning of ...

On the Road

This driver, it seemed, was a man of few words. A year ago I ...