MercoPress. South Atlantic News Agency

Amorim and Taiana meet to address “trade difficulties”

Jorge Taiana will express Argentina’s concern

Brazilian Foreign Affairs minister Celso Amorim will receive Monday in Rio do Janeiro his Argentine counterpart Jorge Taiana to discuss several issues of the “bilateral agenda” including, according to Argentine diplomatic sources the ongoing “trade differences”.

The official motive is a conference for diplomats of several South American countries where several international issues will de considered and discussed.

The top diplomats are scheduled to hold a private meeting later in the day.

Supposedly given the “strategic” relation between South America’s two largest economies several global issues figure in the agenda, but the most urgent is the trade dispute between both countries and the licensing system which has Argentine trucks delayed in Brazil’s frontier crossings.

Ten days ago the Argentine government formally protested what it described as “highly worrying” and “inopportune” Brazil’s decision to impose non automatic licences to certain Argentina produce, thus becoming an obstacle for bilateral trade.

The Brazilian decision had an impact on several Argentine products such as wine, garlic, wheat flour, olives, cooking oil, processed food, pet food and had had hundreds of trucks paralyzed at the border for several days.

Brazilian restrictions became effective with no previous warning which surprised Argentine exporters and even the government of President Cristina Fernandez de Kirchner unaware of the decision.

Argentina summoned the Brazilian ambassador Mauro Vieira to the Foreign Affairs Ministry to express its disappointment. Brazil is crucial for Argentina since it has become its main trade partner.

However the dispute is not new: Brazilian exporters have been complaining of similar restrictions, basically non automatic licences, imposed by Argentina on many of its products such as foot wear, textiles and furniture.

In reality and in spite of Mercosur, Argentina and Brazil have different policies: while Argentine “defends” its industries and thus jobs, (and limits imports) Brazil is more open to trade and internationally has been at the head of countries pressing for more liberal trade conditions globally.

This however is not necessarily true, not because of the Argentine example, but rather given the experience from Mercosur junior members, Paraguay and Uruguay.