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Montevideo, September 18th 2018 - 19:38 UTC

Brazil and Argentina clash over auto-export restrictions; top level mission heads for Buenos Aires

Tuesday, April 22nd 2014 - 06:26 UTC
Full article 8 comments
Cristina Fernandez had to cancel a trip to Sao Paulo to open the Argentina House because Dilma could not attend Cristina Fernandez had to cancel a trip to Sao Paulo to open the Argentina House because Dilma could not attend

A high level Brazilian government delegation is scheduled to arrive in Buenos Aires on Tuesday to discuss the 'urgent' re-opening of the Argentine market for Brazilian auto exports that have dropped 32% since the beginning of the year because of unilateral decisions from the administration of president Cristina Fernandez.

 According to the president of the Automobile Manufacturers Association from Brazil, Anfavea, Luiz Moan, President Dilma Rousseff instructed Minister of Development, industry and foreign trade Mauro Borges to organize a round of urgent formal talks with Argentina to discuss the issue.

“During the meeting with President Rousseff we explained that Argentine measures in the first quarter of 2014 have meant a drastic drop of 32% in automobile exports to Argentina, which is a great blow for the industry” said Moan who added he spent three hours talking about the issue with the Brazilian head of state.

Moan also recalled that Brazil and Argentina signed a memorandum of understanding last March to try and generate financial mechanisms to promote bilateral trade.

“The memorandum was agreed in Costa de Sauipe between Argentina's Economy minister Axel Kicillof and Borges during the Inter American Development bank assembly on 28 March” indicated Moan.

He added that “we need to make the financing of bilateral trade operational and that is the main purpose of the round of discussions in Buenos Aires”.

Argentina absorbs 20% of Brazilian car exports, which means that the collapse of the Argentine market represented a 7% drop in the car industry's sales. Moan and Anfavea also include 29 subsidiary industries.

Argentine president Cristina Fernandez was scheduled to visit Sao Paulo on Wednesday to open the Argentina House in Brazil, and hoped to have Dilma next to her. But apparently Brazilian diplomacy cancelled any meeting with Dilma Rousseff because of the 'presidential agenda'.

President Rousseff after meeting with Moan and industry representatives held talks with Borges and with Economy minister Guido Mantega and decided the issue needed an 'urgent' solution. Thus the delegation will also include the Executive Secretary from the Finance ministry, Rogerio Caffarelli, a direct envoy from Minister Mantega.

Top Comments

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  • Mendoza Canadian

    Just try to get you car repaired here. You have to go out and try to find parts because dealerships don't have them and cannot get them. Every damn thing in this country is a battle...everything.

    Apr 22nd, 2014 - 11:31 am 0
  • ChrisR

    “A high level Brazilian government delegation is scheduled to arrive in Buenos Aires on Tuesday to discuss the 'urgent' re-opening of the Argentine market for Brazilian auto exports that have dropped 32% since the beginning of the year because of unilateral decisions from the administration of president Cristina Fernandez.”

    AGAIN?

    I thought they had done this 1, 2, 3 or 4 times already!

    Argies, you just cannot trust them to keep their word.

    Apr 22nd, 2014 - 11:51 am 0
  • yankeeboy

    Even with the SOY proceeds the BCRA reservers are not building. They have no U$ for imports. I think they are sitting on U$6B in payments due right now.
    It's not going to happen I don't know why the Brazilians are wasting their time.
    Their time would be much better spent getting the car mfgs in Arg to move to Brazil.
    Problem solved.

    Apr 22nd, 2014 - 11:57 am 0
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