Argentina, Brazil agree to accelerate bilateral trade

Argentina and Brazil agreed to abide by the 60-day retention period applied to those products affected by non-tariff trade barriers, and accelerate trade in the agricultural sector, as a way of overcoming the barriers that both countries had imposed on each other and that had threatened a trade relationship that left a US$33 billion revenue per year.

After a two hour meeting in Brasilia between Industry Minister Débora Giorgi and her Brazilian counterpart, Fernando Pimentel, both parts ended a round of negotiations that began in Buenos Aires last week.

Giorgi said at a press conference that “Argentina make its best effort” in allowing products into the country no later than the 60-day period that the World Trade Organization orders in case of the retention of non tariff trade barriers.

“We aim to abide by the non tariff trade barriers time periods, which are the ones set by the World Trade Organization,” Giorgi said.

However, the Minister denied that the National Government carries out a non explicit policy of delaying in customs the shipment of Brazilian products that enter the country. “There are organizations that analyze the phito-sanitary conditions of certain products, and that takes some extra time.”

Meanwhile, Pimentel stressed that “the friendly environment” that was present during negotiations continued. “We have a very similar outlook in what the bilateral relationship should be like and on the world economy. We shared the same views on accelerating imports and reducing the time periods” of non-tariff trade barriers, that in Brazil affect cars and in Argentina affect 557 products of Brazilian origin.

Pimentel explained that the Brazilian government applied the non automatic licenses, a type of non tariff trade barriers to cars and that created trouble for Argentina, because out of every 10 cars manufactured in Argentina, 10 are exported to Brazil.

Giorgi promptly recalled that many of the auto parts used in Argentine cars come from Brazilian factories, creating an annual US$ 1.1 billion deficit, so applying the non automatic licenses affects Brazilian auto part industries.