Wednesday, January 13th 2010 - 08:29 UTC

Brazilian industry calls for end of “strategic patience” trade policy with Argentina

Brazil’s strongest manufacturing organization (and lobby) is considering the possibility that the country “ceases to be tolerant” towards Argentine trade restrictions and consider the possibility of withdrawing from Mercosur.

The “existential crisis” of President Cristina Kirchner administration has exhausted Brazilian exporters tolerance

Representatives from the Federation of Industries from the State of Sao Paulo, FIESP, anticipate that if the opposition wins in next October presidential elections Brazil will end with its “strategic patience” policy towards Argentina.

According to O Estado de Sao Paulo, Brazilian manufacturers have been analyzing and considering options to the trade restrictions imposed by Argentina, which they described as “intolerably tolerable”.

“The administration of President Cristina Fernandez de Kirchner is living an existential crisis”, says the influential newspaper quoting FIESP reliable sources, adding that “the Argentine government and private sector should cease to be concerned about the success of Brazil and begin to take advantage of the neighbour’s market growth, as some are already doing”.

Further on it argues that the Argentine defensive position in trade matters, “with all its restrictions and abuses affecting Brazilian produce”, does not seem the most adequate way of defending the interests of the Argentine production sector.

FIESP representatives believe Mercosur will continue to exist but Brazil, under a different colour government, will not accept any longer “subordination to the domestic humour of Argentines”.

However from President Lula da Silva’s office the approach was different.

“The priority for Brazil in its relations with Argentina stands and will continue, since it’s a state policy”. If the incumbent candidate, most probably cabinet chief Dilma Rousseff, (handpicked by Lula da Silva) wins the presidency next October, “the current policy will continue and even enhanced”, says O Estado de Sao Paulo, quoting government sources.

Brazil is Argentina’s main trade partner but has repeatedly imposed hurdles to Brazilian exports. Cash-strapped Argentina unable to access voluntary money markets is forced to subsist on the so called “double surplus” formula: trade and budget surpluses.

Published in: Politics, Argentina, Brazil, Mercosur.

4 comments Feed

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1 Nicholas (#) Jan 13th, 2010 - 10:22 am Report abuse
Mercosur is worthless with crooked protectionist che idiots from argie fantasy land. Step out of it and join America in a real Free trade Agreement.
2 exocet (#) Jan 13th, 2010 - 11:16 am Report abuse
Nicholas, you're crazy. No grain producing nation will join a FTA with the USA until this country ends its' subsidy policy. Ask the Uruguayans. They had the green light from Mercosur to join a FTA with the USA, and walked out on the second day of negotiations. All this from the “State of Sao Paulo” is just jiberish. March on Mercosur!
3 Nicholas (#) Jan 14th, 2010 - 04:57 am Report abuse
let me just remind you that the economy of Chile and Argie land is the economy of the State of Sao Paulo. For a che socialist idiot kirchner lover like you it is “gibberish”, but for them it is serious and they the right to defend themself against a bunch of crooks in argie land who want's it both way. Funny part is, your economy is still a mess and cannot compete with other nations. I don't blame the Paulistas if they push the Brazilian government to walk away from that funny organization called ”Mercosul/Mercosur. Brazil is better of doing business with Nafta and FTA. It would be wonderful if they walk out.
4 geo (#) Jan 15th, 2010 - 07:16 pm Report abuse
is Nafta usefull for Mexico !?
Nafta..Mercosur..Asean..EuropeUnion..OECD... some others are all
symbolic organizations yet !..hence after 90's years ahead their funtions
should be revised. .notably according to the new Economic Conditions !!

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