Brazil Has No Viable Export Strategy, Says Former Industry Minister

Brazilian former Industry, Trade and Tourism Minister Dorotéa Werneck described the export situation of Mercosur member countries, Brazil, Paraguay and Uruguay as a "tragedy" because of their high dependency on current markets evolution.

Werneck said that Brazil’s current growth is undergoing "a delicate moment" because its exchange rate is undervalued and is taking advantage of the good performance of the world economy with a surge in the price of commodities, which is not a sustainable scenario in global affairs.

"The origin of that growth can’t be found in Brazil’s internal situation. Uruguay and Paraguay follow the same track which is a tragedy", emphasized the former minister before a forum of Mercosur businessmen in Asunción, capital of Paraguay.

An economist and advisor to Brazil’s Foreign Trade Foundation and Foreign Trade Association, Werneck on the other hand praised Argentina, which will have a 7% growth rate this year based on an adequate exchange rate.

"Differences of this kind among Mercosur member countries lead to internal disputes in the block and the impossibility to decide on a joint export strategy to third countries," she underlined.

Further on Werneck highlighted that countries which have significantly advanced have done so exporting and specifically mentioned, Japan, South Korea, China, Mexico and Chile.

But she also warned that the export process demands time, investment and the first results can only be perceived at least two years later.

"You can’t play with exports, you have to be ready, a prevention job is needed to be prepared for events that can lead to the closure of markets," said Werneck apparently in direct reference to the foot and mouth disease outbreaks in Brazil, which have led 30 countries to ban Brazilian meat imports.

This article appeared originally in Mercopress – www.mercopress.com.

Tags:

You May Also Like

Amid Bitterness and Charges of Corruption FIFA Announces 2014 Cup’s Opening Match for São Paulo

The city of São Paulo, is southeastern Brazil, will host the opening match of ...

Brazil Creates Police Force for Triple Frontier

The Maritime Police Nucleus (Nepom) of Brazil’s Federal Police, located on the shores of ...

Thanks to China There’s Only One Way to Brazil’s Agribusiness: Up

Agribusiness was the sector of the Brazilian productive chain that was least affected by ...

Smiling Brazil to Bring Fluoridated Water to Half a Million People

Around half a million Brazilians are about to receive the benefits of water fluoridation ...

Another Down Day for Brazilian Stocks

Latin American markets collectively receded, following a downturn in U.S. shares. U.S. Federal Reserve ...

Brazil Spends More with Indians, But They Still Have No Voice

An analysis of specific actions in favor of indigenous peoples in the Brazilian budget ...

Brazil’s Businessmen Urge Congress to Bar Venezuela from Mercosur

Brazilian businessmen requested Brazil's Congress on Thursday, November 29, to freeze plans for Venezuela's ...

Brazil Government Debt Stable at 51.7% of GDP

Brazil’s net government debt remained stable in March at US$ 481.83 billion (R$ 1.021 ...

Record Number of Jobs in Brazil, But Still Far from Target

The level of Brazilian formal employment – jobs with signed working papers – rose ...

Ethanol: With an American Friend Like This Brazil Needs No Enemies

In a recent letter to President Obama, the Republican Senator from Iowa, Charles Grassley, ...