Argentina/Brazil propose higher external tariffs for Mercosur
Argentina supported by Brazil has proposed increasing Mercosur Foreign External Tariff to better defend the group when country members are being flooded with cheap imports.
“Let’s be friends and partners”, said Argentine Foreign Affairs minister Hector Timerman during the first day of the Mercosur summit in Montevideo previous to the presidential meeting. “Let’ not allow the foreign crisis to be a reason to move back our social and economic development”.
Brazilian Economy minister Guido Mantega had anticipated that at the current Mercosur summit he would support adding 100 new products to a list of 100 products that can be charged a 35% import tariff.
“The tariff will protect industries in the region from cheaper imports” said Mantega at the Finance ministers and Central bankers meeting in Montevideo. “With this we can make a better defence at a moment when every country in the region is being flooded by foreign goods” Mantega told reporters.
However Argentine sources revealed that the tariffs’ increase proposal did not have that immediate acceptance from Mercosur junior members, Uruguay and Paraguay.
Apparently the governments of Presidents Cristina Fernandez and Dilma Rousseff during a bilateral meeting a couple of weeks ago agreed to increase the external tariff to safeguard the home market from cheap Asian imports. The idea is that the average tariff currently at 14% be increased considerably.
However Uruguay and Paraguay are also claiming for market access to Argentina and Brazil, which to a significant degree remains weakened by the non automatic import licences system implemented by both countries to ‘cool’ imports.
However even with this back-of-the-scene mistrustful framework, Argentina’s Industry Minister Debora Giorgi proposed a “more industrialized Mercosur” with the purpose of substituting the 460 billion dollars in manufacturing that the region imports annually, thus helping to strengthen local production complementation among country members.
“We must make Mercosur more industrial oriented to generate better and more jobs and development without asymmetries”, said the Argentine minister.
Giorgi said that implementing added value to exports through innovation and design should be the production goal.
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Protectionism by the WHOLE bloc needs serious and publically transparent debate that considers its effects on ALL member states.
Really? Is it better to kill the industry,the banks finance the consumption?? You people did not learned anything from the financial meltdown......
The bankers and speculators happy...Sure,making products in Argentina,USA,Brazil is more expensive than making in India,China,bangla desh....But is the reality.....You want them to work for you?/ No problem,but still you have to pay....How wil you pay?BY BORROWING!! USA debt 15 trillion dollars.Europe debt: 16 trillion EUROS( foreign debt).
You people need a lesson in reality!!
well done Brazil and Argentina..Well done Mercosur.
@wesley mouch, aka moron who should spend his time improving his crappy English instead of commenting on issues that are beyond his partisan little brain:
1 - The housing bubble was created and burst during Bush's era; had as enabler Clinton-era 'free market' reforms that were embraced by both main US parties. Obama isn't even in the equation.
2 - Yes, Dilma has done an awful job with the economy, but that isn't, as you probably think, because of her leftism; it's because, instead, she has worried too much about inflation, she has given way too much leeway for orthodox measures to be imposed on the economy, she has allowed further currency appreciation (as demanded by speculators and their 'pro-free market' allies), she has permitted the Central Bank to stall credit growth, and she has slashed investment by SOEs out of fear of inflation. Predictably this produced an awful effect on industrial output, which she's desperately trying to revert by means of protectionism. But she's not the only one doing that.
3 - Brazil has had current account deficit for years. What sustained growth in previous years, therefore, was the domestic economy, not the 'commodities boom', which has not burst yet.
Got it right in one.
Never thought I would agree with you!
There is just the problem of 'tit for tat' from the other countries of course, which may be even worse for Mercosur.
Argentina is finnish,
lets hope she dont drag brazil down with her,
more bullshxt
BUT
you should not generalize while saying that No Mercosur country is
export-oriented at macro levels......
some sectors are export- oriented, for instance that the Argentine
Auto Sector is highly export- oriented........!!
all socialist governments just like toe PIIGS in Europe...dever forget...
Margaret Thatcher...“the problem with solcialst governments is that sooner or later they run out of other peoples money”
you should not look to these kinds of problems dogmatically/ideologically
Uruguay/Paraguay = little trucks
Brasil/Argentina = trailers
Chile could be even slogged in Mercosur....!
Brasil/Argentina = trailers
AND
Great Britain is the ENGINE .
Argentina trailer had American Cummins Engine up to year 2001,
after this date it's motor changed to a new one which have not been
resolved it's technology yet...you see it's performance ...!
BUT
you 'll object as saying that it's technology gives rise to higher
gas consumption (makes high inflation !)
THEN
my reply will be simple ~ 10 % inf.rate is very normal and tolerable
for Argentina........!!
WRONG:
1) If countries had NOT chosen protectionism then the Great Depression would not have occurred.
2) When Argentina, Brazil and OTHERS are choosing to go down that path, you almost certainly will have the 2nd Great Depression in this decade.
p.s. Remember Newton's law:...for every action there is an equal and opposite reaction
Engine to whom exactly? The UK barely has an economic presence in Latin America
[but a big enough presents it seems to keep you lot busy and on your toes.?]
19 geo
You are so unbrilliant, that you now, ask your own questions,, followed by you own answers,
I bet you learnt that in the asylum .
France it seems is heading south, not the brits,
We will be ok.
.
You're not worth a response -- leave your idealogical cocoon and go study some more.
70 years from now, probably another blind partisan and worshipper of the free markets will say the Second Great Depression was not caused by excess of debt or dangerous, criminal even, speculative activities by big banks -- no, the market is never wrong, the future partisans will say. It was all the governments' fault - theirs and their damned protectionism.
However, the crisis is too recent for us, now, to lie about its causes. And it has been caused by the same factors behind the Great Depression.
“but a big enough presents it seems to keep you lot busy and on your toes.?”
Whom is the UK keeping busy, briton? Perhaps Argentina, 'cause neither me nor my country give a lot of thought to the UK.
the comment prove that,
as for the argentines,
well the brits wont always be sitting on their backsides,
If you are an economist: always remember that there is a special place reserved for you in Hell to read your projections If not: go read the Kondratiev Long Wave theory.
I agree with Immanuel Wallerstein's exposition of Kondratiev. But I still believe that IF countries insist on following the purile thinking that protectionism is the answer then Newtons Law will apply: Any country that currently supplies Argentina or Brazil and is adversly affected by their move to protectionism will enact laws to balance the move, if not to help their own industries then to punish the move: how about a 35% duty on cain sugar from Brazil. Columbia and every other country will gain and Brazil will be punished.
Brazil cain sugar would be too expensive to compete; or oil: Brazil oil at US$135 a barrel and the rest of the World at US$100 = lots of unemployment in the sugar cain fields up North.
I'm going to bed - My last word on the matter. Good night.
Forgetit while I agree with you the internal markets are important to mercosur countries the rapidly growing export sector has been hugely important to Argentinas spectacular growth.It is essential that competitiveness as well as social inclusion are maintained.Remember why all of Europe not just the Eurozone is collapseing.I think these taxes are neccesary now but must be reduced if Argentine industry is to continue to advance
Wait til the EEC places a 35% countervail duty on imported cars and shoes.
Bye Bye Brazil and Argentina. Welome to an expanding EU shoe and auto industry
Correct see #9
you always complain ,but don't bring any questions/arguments...!
---------
** Forget / “” eteega
Kondratieff circuits/conjuncture curves are not valid at present
economic processs like almost all other Economy Theories in books...!!
Only if you (Argentina) abide by them :o)
Codswollop
** brit
you always complain ,but don't bring any questions/arguments...!
Theirs no point, when you do it for us,
.
I've told you before. A question mark goes at the end of a question. You just can't learn can you. Any Irishman would know this simple rule. But you've been busted there haven't you?
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