Brazil and Argentina Try to Diffuse Tension in Their Bilateral Trade

    Boudou and Mantega

    Boudou and MantegaArgentina and Brazil made significant advances in outstanding bilateral trade issues following a joint meeting between top policy makers from both countries, Brazilian Finance Minister Guido Mantega told reporters.

    The meeting, in Brazil’s industrial hub of São Paulo, was jointly chaired by Mantega and Argentine Economy Minister Amado Boudou.

    The two ministers announced the creation of a US$ 100 million fund to offer financing to Argentine companies engaged in trade with Brazil. Financing will come from government agencies of both countries.

    Creation of the fund came on recognition that Argentina frequently has been at a disadvantage in its trade with Brazil, in part because the size of the Brazilian economy has permitted more economies of scale for Brazilian companies.

    Argentina is Brazil’s third-largest trading partner behind China and the US. In the first five months of 2010, Brazil posted a trade surplus of US$ 442 million with Argentina. Brazil is Argentina’s main trade partner.

    Both tariff and non-tariff barriers have been a point of tension between the two countries. In recent weeks, Brazilian exporters have complained about possible barriers to some products exported to Argentina, including food products and some manufactured goods.

    Argentine importers said the barriers were very real, but have been easing lately. The Argentine government eased restrictions after the importers agreed earlier this month to use local currencies for all transactions, rather than dollars or euros, as has long been the practice.

    “The situation is normalizing” now, but the informal and arbitrary way that imports had been shut down is worrying, said Miguel Ponce, the spokesman for the Argentine importers’ chamber Cira. Argentine officials used bureaucratic snafus at the food import certification agency to stall the cargos, Ponce said.

    Last week’s meeting was designed, in part, to defuse bilateral tensions regarding such rumors.

    Boudou said: “From time to time, there are some problems in our trade relations, but we are working to remove them.”

    Brazilian Trade and Development Minister Miguel Jorge said: “We advanced on the trade issues at today’s meeting. The remaining issues are very small”. But ministers declined to discuss details of the discussions.

    Boudou said increasing bilateral trade was critical “in helping both countries to surmount crises, such as the recent global crisis.”

    Jorge said officials of both countries were especially interested in boosting trade in the areas of oil and gas, auto parts, aviation equipment and farm equipment.

    Mercopress

    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

    World Bank Might Use Brazil’s Zero Hunger in Other Countries

    International organizations recognize Brazilian government efforts to achieve the Millennium Development Goals related to ...

    Brazil’s Petrobras Raises to US$ 7.1 Bi Its Investments Overseas

    Brazil’s state oil company Petrobras plans to invest US$ 7.1 billion abroad over the ...

    Building under construction

    The Perils of Buying Under-Construction Property in Brazil

    With the increasing amount of Brazilian and international property buyers acquiring pre-construction real estate ...

    Brazilians Say It Has Become Harder to Get a Job

    Consumer confidence in Brazil’s situation rose 1.5% in October, in comparison with September, according ...

    Apart hotel in Fortaleza, Ceará state, in Brazil's Northeast

    Arabs Find Out Brazil Is a Good Place to Grow Their Petrodollars

    The relation between Brazil and the Arab countries has crossed the boundaries of trade ...

    A Cinematic Sensibility

    Rich and powerful to the point of arrogance, when it cannot beat the competition, ...

    Coca-Cola in Brazil

    Brazil’s Thirst for Coke Grows 8%, 2% Over Global Average

    Brazilians are drinking more Coke. The sales volume of Coca-Cola Brazil increased by 8% ...

    US Senators in Brazil to Learn How Ethanol is Made and Distributed

    A group of American senators begin a week-long visit to Brazil this Friday, April ...

    Brazil’s Antarctic Base Hooked Up to the World by Satellite

    On Friday, March 17, Brazil’s Antartic research base (Estação Antártica Comandante Ferraz) got connected ...