MercoPress. South Atlantic News Agency

Cristina Kirchner meets Lula da Silva to discuss bilateral trade differences

President Cristina Fernandez de Kirchner

In the midst of the tension between Argentina and Brazil, President Cristina Fernández de Kirchner will meet Friday with Brazilian President Lula Da Silva after both take part in the 3rd annual United Nations “Alliance of Civilizations” Summit taking place in Rio do Janeiro.

Previously, the Argentine government had admitted to clashes with Brazil over commercial differences, but minimized the impact of the conflict on bilateral relations, saying that bilateral trade grew 48% during the first four months of 2010. Brazil has become Argentina’s main trade partner.

After Brazil's administration threatened to implement retaliation measures if its foodstuffs are banned from entering into Argentina, now Brazilian businessmen are also protesting against the alleged undercover restrictions implemented by Domestic Trade secretary Guillermo Moreno as they see a major reduction on Argentine demand.

Argentine-Brazilian Chamber of Commerce President Jorge Rodríguez Aparicio told radio reporters that “Even though the Argentine government has not delivered any formal written norm, the Argentine businessmen have already reduced their imports of Brazilian products.”

Rodriguez Aparicio also warned about “a hike of local prices that's already taking place as businessmen are stocking up”, and added, “The biggest concern is the image of distrust that Argentine businessmen are creating of themselves in Brazil.”

Asked about Moreno's measures, Rodriguez Aparicio went hard and said “They are arbitrary and illegitimate as they do not comply with the trade agreements signed by both nations”. He also revealed that representatives of the Chamber will meet Production Minister Débora Giorgi next week in an attempt to solve this situation.

“There is a lack of common sense and logic in this whole matter; I'll hope the minister could give us some reasonable explanation.”

However Interior minister Florencio Randazzo remarked Thursday that “There is no such foodstuffs ban”, and also denied having received any kind of complaint from Brazilian President Lula Da Silva.

“There is no impediment for the free entrance of Brazilian goods”, Randazzo said during a radio interview, and added: “I haven't seen Lula da Silva mad at us.”

The minister also remembered that ”Argentina is part of the World Trade Organization (WTO) and will always comply to policies established by the WTO, hence there isn't and won't be any problems with Brazilian imports.“

”This is just a push for interests between two nations, which usually happen when leading trade talks. We will always defend the national industry as well the Argentine workforce, but there is no animosity against Brazil. We'll never raise discrepancies with a country that imports three times as much of what it exports to Argentina.”