MercoPress. South Atlantic News Agency

Brazil warns about retaliation measures if Argentina blocks trade

Welber Barral head of Brazilian Foreign Trade Department

Brazil's administration has threatened to implement retaliation measures if its foodstuffs are banned from entering into Argentina, according to statements made by the Foreign Trade head Welber Barral in a press conference.

“Brazil's stance is based on reciprocity” Barral stated when he was asked about the implementation of non-automatic import licenses. However, he specified that his country is willing to “act in retaliation for this situation” if Argentina in fact bans its foodstuffs from entering into the country.

According to Barral, Brazil has yet not been officially informed on the matter and thus “on the eventually of measures to be taken”. The data claiming that Argentina is to ban Brazilian goods from entering the country has been released by ‘extra-official ways’ and it assures that foodstuffs coming from Brazil are to be halted and not allowed to enter its neighbouring country.

“The only facts we have now are rumours on Argentine media on the measure and President Cristina Fernández de Kirchner's statements assuring ‘every agreement is to be fulfilled',” Barral stated.

According to the Brazilian official, his administration in “constantly checking trade flow in the frontier so to spot any irregularities if they take place, a situation that has yet not happened.”

“Brazil exports a quarter of what it imports in foodstuffs to Argentina, it's very hard to think that a rational human being would want to place obstacles within this situation,” Barral pointed out. Brazil sells 500 million USD in food products to Argentina but imports 2 billion USD.

On what will the retaliation measure consist on, Barral assured “measures can rapidly be implemented” and explained that “Brazil has an electronic imports monitoring mechanism which is, in fact, a button ready to be pushed.”

Brazil is not the first country to raise its voice and post complaints following rumours of imports being banned from entering Argentina made their way to local media. The European Union made an official presentation and Mercosur associates Uruguay and Paraguay have preferred a low key diplomatic approach.

In related news a report by Global Enabling Trade 2000 has Argentina among the 30 most protectionist countries in the world and is one of the four countries with the most customs barriers in the region.

However in the last year Argentina’s performance improved slightly, as it showed itself “more amicable” with international trade says the report elaborated in the framework of the World Economic Forum, a non-profit foundation with headquarters in Geneva, known for its annual assembly in Davos, Switzerland.

In a ranking that includes 125 countries, known as the Index Ratings for Trade and in which the lowest value represents the best country with which to establish trade relations, Argentina occupies the 95th spot.

In the region, Argentina is only ahead of Bolivia (98), Paraguay (103), and Venezuela (121), but is behind Colombia (91), Ecuador (89), Brazil (87), Peru (63) and Uruguay, (50). Chile is the best example in Latin America, as it is located in the 18th spot, ahead of the US (19) and behind UK (17).