Argentine Industry Minister, Debora Giorgi, and her Brazilian counterpart Fernando Pimentel will meet this Thursday in Brasilia in order to discuss a possible solution for the trade conflict currently affecting Brazil and Argentina
The meeting will also include the presence of both nations’ industry secretaries, Eduardo Bianchi and Alessandro Teixeira.
Giorgi stated “We received a call from minister Pimentel this morning (Monday) and we think we are on the right track. I’m positive we’ll find a solution for the bilateral trade differences showed so far.”
“This marks the continuity of last week’s negotiations in Buenos Aires”, said Giorgi.
Tensions between the two senior Mercosur full members triggered after Brazil’s President Dilma Rousseff moved forward to impose non-automatic licenses on vehicles and auto imports and 17 other items, thus restricting the trade with his key neighbour.
Thousands of Argentine manufactured cars are delayed in the Brazilian border as a direct consequence of the licences, a resource to which Argentina also has, and continues to appeal to ensure a trade surplus.
The auto sector is the only one which shows a surplus (413 million USD) in the multiple bilateral trade with Brazil, compared to an overall deficit for Argentina of 4 billion USD last year.
The president of Argentina’s Industrial Union, Jose Ignacio de Mendiguren is also scheduled to meet next week with his peer from the powerful Federation of Sao Paulo Industries, FIESP, Paulo Skaf to try and iron out an understanding at private sector level. The Argentines have proposed a system of voluntary quotas to avoid appealing to the controversial non automatic import licences.
Brazil is Argentina’s main partner with an annual overall trade over 31 billion US dollars, and is crucial for the auto industry since the northern neighbour absorbs over half of Argentine auto exports.