Brazil allows for additional Argentine cars imported in the country

Argentina and Brazil gave strong signals of a more relaxed dialogue in the serious bilateral trade conflict affecting both nations sparked by their respective import blockades, in a decision that seems to prioritize the Mercosur over their different realities. 

Seen as a gesture to cool down the conflict, Brazil cleared over 2000 Argentine-made cars for entry, while Argentina allowed for the import of tires, batteries and tractors.

Both countries seem to be preparing a relaxed scenario for the next meeting between Industry Minister Débora Giorgi and her Brazilian counterpart Fernando Pimentel in Brasilia this Thursday. 

The vehicles previously denied entry at the Brazilian border come from the General Motors and Fiat factories. The Argentine government remained optimist about Thursday’s meeting, especially due to a good-spirited telephone call between Giorgi and Pimentel last Monday.

Sources also believe that a day before their meeting, the Rousseff administration will allow an additional 2,000 cars into the country. 

The Brazilian government told the automakers over there that it would import between US$40 and US$50 millions in vehicles from Argentina, which would amount to the total of the cars currently retained at the Brazilian border, which cost an average US$40,000.

At the same time, the Mercosur’s largest member is apparently willing to discuss an export quota in certain sectors such as farming machinery, just as the Argentine government suggested during the ministers’ meeting last week. 

The Argentine government reacted immediately, letting in Brazilian cargo that contained tires, batteries and tractors.

Still, next Thursday’s meeting is expected to be arduous, since both sides would be looping to come up with a new quota scheme that keeps both sides happy.

It’s clear however, that both sides are decided to find a fast solution to the bilateral conflict.