Brazil to 'evaluate legality' of new local trade barriers

The Brazilian government expressed concerns over the new Argentine trade barriers going in effect on Wednesday and informed that it would “evaluate its impact and legality” before making any decisions, Foreign Trade secretary Tatiana Prazeres said. 

“We’re still worried about this and we’re in permanent contact with the Brazilian private sector and the Argentine Government in order to try and understand the economic impact of this new legislation and its judicial consistency,” Prazeres said during a press conference.

Argentina’s new trade barriers force importers to sign an affidavit detailing their purchases in order to be granted authorization to bring imported goods into the country. 

Brazilian authorities said they would they time to evaluate the effects of the new measures on bilateral trade and whether or not they are in accordance with international law.

Prazeres chose not to foretell any of the possible measures that the Rousseff administration could take in reciprocity, but insisted that they will work hand in hand with the private sector in order to avoid hurting exporters. 

The local Government set up a new set of requirements for imports in order to stop capital flight amidst the global economic crisis.

Brazilian industrial leaders have called these a “barrier,” that they assure will affect bilateral trade. 

Their Paraguayan and Uruguayan counterparts also criticized the new trade requirements.

Argentina is Brazil’s third largest trade partner, leaving a net worth of $33 billion in 2011, which resulted in a deficit for Buenos Aires for over $4 billion, according to official authorities.