Brazil's industry leaders admit need to 'restore balance of trade' with Argentina

Sao Paulo’s Industries Federation (Fiesp) assured that it would grant Argentina with a “confidence vote” and would wait until the end of February in order to evaluate the consequences of the new import barriers applied by the local Government. 

“I’d rather wait until the end of February and wait and see where the Argentine Government goes after this,” Paulo Skaf, the leader of the organization, said in a press conference after meeting with the Argentine ambassador in Brazil, Luis María Kreckler. 

Since February 1st, the local Government demands that all importers sign a sworn statement detailing their purchases abroad before they are authorized to do so. The authorization process is believed to take from three to ten days, creating severe delays on imports.

“We will not be talking about delays when this programme has just been implemented. I believe this is a measure put in place in place for a better coordination of Argentina’s organizations dealing with federal public administration,” Kreckler said. 

During the meeting, Skaf and Kreckler discussed the need to restore the balance of trade, which in 2011 left a $4.2 billion deficit in Argentina.

“Argentina buying from Brazil is good. However, it is also important that Brazil buys more from Argentina as well,” Skaf said.