Timerman considers trade deficit with Brazil is ‘concerning’

Foreign minister Héctor Timerman revealed today that the trade deficit Argentina has with Brazil is “concerning”, and indicated that both nations are working “to reduce it.”

Furthermore, the minister also explained that he was not part of yesterday’s meeting between presidents Cristina Fernández de Kirchner and Dilma Rousseff: “They were alone for almost two hours and I have no idea if the trade deficit topic was even discussed”, and added, "Anyway it is a concerning topic for both countries as Argentina has a trade surplus with the rest of the world except with Brazil.”

To reduce the trade deficit with the giant neighbour, Timerman considered that both nations “should focus on selling value added products made jointly to the rest of the world.”

Imports from Brazil increased 322.8 percent between 2003 and 2010, growing from US$4.2 billion to US$17.9 billion, according to data released yesterday by Sectorial Economic Investigations (IES), a consultancy.

That came at a time when bilateral commerce between the two neighbours increased 273.5 percent going from US$8.641 billion in 2003 to US$32.262 billion.

In 2010, imports were led by automobile parts that increased 67.3 percent year-on-year and made up 26 percent of total imports to Argentina.

Last year, total exports to Brazil grew to US$14.319 billion, an increase of 25.9 percent when compared to 2009.