Tuesday, October 11th 2011 - 07:13 UTC

Brazil is a “decisive partner” for Argentina in the event of a major crisis

For Argentina, Brazil is a “decisive partner” in addressing the negative effects of the world economic crisis which has hit the United States and the European Union, said on Monday Argentina’s Deputy Economy minister Roberto Feletti.

Feletti admits the Brazilian dependency of the Argentine economy

“Argentina is well placed economically, but if the global situation worsens, it must gear its economy towards the domestic market and trade with Brazil and other countries of the region”, said Feletti.

“The link with Brazil is decisive for Argentina in what refers to industry, to exports, but also in the political field. Currently no one in his right mind can have political aspirations if he/she does not contemplate a South American integration and a close relation with Brazil” underlined the Argentine official speaking to a local Buenos Aires radio.

Brazil purchases annually from Argentina in the range of 20 billion dollars, recalled Feletti who also said that UNASUR (Union of South American Nations) Finance ministers are working on a mechanism to protect the region from the effects in the event of a worsening situation in the Euro and dollar zones.

If the crisis worsens “Argentina will have to replace overseas sales with domestic market sales, with domestic supply and sales to the regional block” as it did successfully in 2009 said the Argentine minister.

“That is why we convened and met with all South America Finance ministers last month in Buenos Aires to analyze a common strategy”.

Feletti finally underlined that Argentina feels calm, “we have little debt, good level of foreign exchange reserves, surplus in its trade accounts and we are not exposed to a financial attack: there are no chances for that”.

 

Published in: Economy, Politics, Argentina, Brazil, Mercosur.
Tags: Argentina, Brazil, Roberto Feletti, trade, Unasur.

8 comments Feed

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1 Rhaurie-Craughwell (#) Oct 11th, 2011 - 02:31 pm Report abuse
i.e a good bail out partner....
2 yankeeboy (#) Oct 11th, 2011 - 03:17 pm Report abuse
I am pretty sure they don't want Argentina's soy....
3 GeoffWard2 (#) Oct 11th, 2011 - 10:04 pm Report abuse
Brasil - where else can Argentina go for protection when the going gets really tough?
Chile? Noooo
Uruguay? Noooo
Paraguay? Noooo
Venezuela? Noooo
Cuba? Nooo
USA? Noooo
China? You must be joking!
IMF, IDF? You REALLY must be joking!!

It will involve pouring Billions and Billions into the Argentinian economy.
Will, and should, Brasil do this in circumstances where its own future is being destroyed by the same forces?
No, Brasil is NOT the equivalent of Germany within the EU. Such billions are beyond good sense.
No, Argentina MUST be let go, if Brasil is to survive its own crisis.
4 jerry (#) Oct 11th, 2011 - 10:42 pm Report abuse
Of course Argentina is financially doing well. Just this morning, banks were telling retired people that those coming today for their retirement pension would have to come back tomorrow, as the only money released by the CFK government was to pay those persons who had come for their money last Friday and were turned down as there was no money Friday. What a dream world!!
5 O gara (#) Oct 11th, 2011 - 11:37 pm Report abuse
Well boys you must be near coming off in your pants with the hope Argentina collapses but growth continues unabashed, car sales soar despite Brasil haveing a hiccup and soya wheat and maize are recovering rapidly on the markets.I hope you enjoyed your little pleasures and they lasted more than a few seconds as really you should concern yourselves more with a country in the process of printing the equivalent of 100 billion euro.Now i wonder where that is?????????????
6 yankeeboy (#) Oct 12th, 2011 - 01:30 pm Report abuse
5. I am not sure where you are getting your stats but they are wrong. Soy is down 15% from high as of today and Renault is shutting down Arg production in Nov because of falling sales to Brazil. Argentina sells only 2 things that make any sort of difference to their economy SOY and Cars, both are doomed in this next cycle just wait and see. Did you think Soy will keep going up and up? It cyclical idiot.
China is slowing so fast they don't know what to do. They will end up buying more Soy from US and Brazil to keep trade in balance and leave Arg in the dust. There is plenty of Soy around. And cars, you will see the demand fall sharply and quickly. You need to read some recent news.
7 Brasileiro (#) Oct 13th, 2011 - 03:01 am Report abuse
Geoff, after this your comentary, i dont have doubt: you is a soldier!
Crisis in Brazil: you are crazy, soldier!!!
Brazil is more strenght then your thought!
Long live to UNASUL!
8 GeoffWard2 (#) Oct 13th, 2011 - 11:31 am Report abuse
Hi, Brasileiro,
no, never been a soldier.
The crisis is a world crisis which, if money and trade collapse (and this could happen at any time soon) ALL South American countries will be hit hard because they are supplying countries of primary products. Brasil will not be immune and will have to look to her own monetary and economic survival, the same as the rest of the world's nations.

Yes, Long Live Unasur, and Mercosur, and CAN, and Parlasur!
But these all need A LOT more than South America is giving to make them into something effective, something integrated, something special.

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