MercoPress. South Atlantic News Agency

Brazil/Argentina agree trade differences should not influence political relation

Lula and Cristina, much smiles and gallantries but differences persist

Brazil and Argentina ended Wednesday in Brasilia a full day of talks at presidential level without reaching a clear agreement on trade disputes that have caused disruptions to the bilateral relation.

Brazilian president Lula da Silva said that protectionist measures don’t solve trade differences and recommended a greater integration.

Addressing the Argentine delegation headed by President Cristina Fernandez de Kirchner, Lula da Silva said that “protectionism is not a solution, it only generates distortions”.

Mrs Kirchner travelled to Brazil for the programmed presidential meetings every 90 days to address bilateral issues.

“More trade and more integration” is the solution for differences insisted Lula da Silva.

Bilateral trade between South America’s two largest economies contracted 30% in 2009 because of hurdles and bureaucratic measures imposed by both sides, mainly the so called non automatic import licences which can delay documents up to 60 days.

“It's clear that the need to deepen our relationship with Brazil is not a matter of opportunity or of seizing the moment. It reflects a deep conviction” said Mrs. Kirchner.

“In moments of international crises, like the one we have suffered, difficulties arise when dealing with relationships, and it's necessary to confront them with maturity” continued the Argentine president.

”It's necessary to find the tools and the policies to help us overcome those differences. This mechanism of presidential meetings every 90 days, which was previously every six months, is an element that will allow us to resolve (differences) faster and with more efficiency“.

”We're both partners, but Argentina cannot fail to recognize the size of Brazil's economy“ Mrs. Kirchner highlighted, and she remembered that Brazil is ”the main destination of our products.“

The Brazilian decision to slap non automatic licences to Argentine produce such as wheat flour, wine, cooking oil, garlic, fresh fruit, pet food, among others with out having announced them previously, left hundreds of Argentine trucks stranded for days at Customs posts.

At the beginning of the year Argentina had applied similar measures to Brazilian textiles, foot wear and furniture triggering complaints from Brazilian corporations and demanding retaliatory measures.

Brazil is Argentina’s main trade partner with bilateral exchange having reached 31 billion US dollars in 2008.

Lula da Silva said that to avoid trade and corporation differences from influencing the political relation, ministers of Development, Industry, Production and Trade from Brazil and Argentina will meet every 45 days to address bilateral issues.

“We must struggle for bilateral answers to address the crisis. Brazil is interested in a strong competitive and prosperous Argentina and Argentina also needs of a prosperous and strong Brazil”, said Lula da Silva.

“Never before our countries have been so integrated and never have they been so inseparable”, pointed out the Brazilian president adding that both countries must face international challenges with a “regional integration view” in a “coordinated” way.

He recalled that Brazil’s Economic and Social Development bank is an enthusiast example of integration, having extended millions of dollars in loans to help with infrastructure and development in Argentina.

Besides trade differences the two delegations signed agreements on nuclear cooperation for medicine purposes, foster tourism and to create a joint project to control dengue. Argentina is also planning to export molybdenum to Brazil, a substance that is used as radioactive isotopes for nuclear medicine, following an agreement between the Argentine CNEA atomic agency and its equivalent in Brazil.

With integration spirit Mrs. Kirchner at the end of her visit commended her Brazilian counterpart, saying that ”every time I come here I leave with solutions. And every time Lula da Silva goes to Argentina we take a step further in the integration process.”