MercoPress. South Atlantic News Agency

Brazil to scrutinize Argentine imports licences system

Brazilian exporters are furious with what they consider Argentine “manoeuvring”

Mercosur senior partners are again clashing over trade. Brazilian government announced that it will run an exhaustive study of all the non-automatic import licenses that President Lula da Silva’s administration believes cause nothing but Argentine restrictions on Brazilian products.

Brazil holds that non-automatic import licences attached on its exports by Argentina have failed to actually boost local production and benefited third supplier countries instead (mainly Asian countries).

Originally Brazil accepted Argentina’s non automatic licence system and limiting some exports to help Argentina boost domestic production and manage a delicate forex situation. Brazil demanded in exchange that its market share should not be filled by third country competitors.

Brazilian Commerce and Industry Minister Miguel Jorge considered of an extreme importance to start monitoring as soon as possible the Argentine import licenses that are delaying Brazilian product from entering Argentina.

“We are not going to wait 45 days until the next Industry ministries meeting. I have already requested a meeting to the Argentine government”, Jorge was quoted at an interview with Brazilian newspaper Valor Económico.

According to Lula da Silva's minister it is imperative to find a prompt solution for the matter.

Bilateral commerce which reached 31 billion US dollars in 2008 fell more than 40% during the first semester of 2009 and many Brazilian businessmen consider that the breakdown are a result of the Argentine bureaucratic “manoeuvres” that placed a delay on the non-automatic import licenses.

Brazil has begun appealing to similar non automatic licensing tactics which have caused long delays of Argentine trucks at border crossings. This has been particularly sensitive for Argentine perishable exports, mainly fruit.

Brazilian President Lula da Silva met with his Argentine counterpart Cristina Fernández de Kirchner last week in Brasilia. Both leaders established that as from 2010 both countries will tighten controls so that import licenses can get authorized within 60 days as it was originally established.