MercoPress. South Atlantic News Agency

Paraguay announces trade countermeasures on Argentina and Brazil

Finance minister Dionisio Borda (Photo AP)

Paraguay will apply tariff related measures on imports from Argentina and Brazil to protect local industry announced the country's Finance minister Dionisio Borda arguing that the treatment will be similar to that from the senior Mercosur partners.

In a long interview with the Sunday edition of ABC Color Mr. Borda alleged Argentina and Brazil have set up a whole network of barriers to Paraguayan goods which is also contrary to Mercosur. "We're going to establish the same measures they apply on us", added Borda who nevertheless said the measures would be transitory and are contemplated in Paraguay's stimulus plan. The decision follows on the campaign "Buy national products" which is being sponsored by the Paraguayan government that also demands 70% of Paraguayan goods and services from suppliers. "We want to support domestic industry, and jobs and avoid any risks of temporary redundancies", said Borda who added the package would be announced sometime late this week on his return from Portugal where all Latinamerican Finance ministers and Central Bank presidents are meeting ahead of the G20 London summit. Paraguayan industry has been claiming for a long time for some protection measures for the domestic market since local goods face barriers when trying to have access to the Argentine and Brazilian markets. Apparently all sales of home hygiene and cleansing products must pay over 48% export tax in Argentina and with textiles a previous export certificate is needed before the operation can go ahead, according to Paraguayan industrialists. Borda admitted the first consequences of the global slowdown have begun to reach Paraguay and called on all political parties to support the stimulus plan officially known as "economic recovery program", and please not to call it the "anti-crisis program".