MercoPress. South Atlantic News Agency

Argentina denies restrictions in trade with Brazil; admits ‘logical differences’

Clarin sources say that up to 40.000 “Made in Argentina” cars are blocked at the Brazilian border

Argentina’s trade relation with Brazil does not have restrictions and “it’s understandable that some differences surface” when bilateral trade will be reaching over 40 billion dollars this year, said Argentine Industry Ministry sources in Buenos Aires.

The same sources highlighted that “we cannot talk about restrictions if we take into account that Argentine imports from Brazil soared 34% in the first semester compared to last year”.

“It’s logical that differences arouse when you have a trade relation as the one Brazil and Argentina have, which will reach over 40 billion dollars this year”.

The strong reaction follows publication in Buenos Aires daily Clarin of claims that “40.000 Made in Argentina” vehicles were blocked at the Brazilian border, and similarly claims from Brazilian textile and footwear exporters that the Argentine bureaucracy was obstructing shipments.

However according to Argentine Industry ministry sources in the last week Wednesday to Wednesday, “Brazil liberated 18.500 Argentine made vehicles, equivalent to 300 million US dollars” of which 4.200 GM; 3.000 VW; 2.000 Toyota; Peugeot-Citroen 9.602 and Mercedes Benz, 250. “Where’s the conflict?”

Besides Argentina’s Automobile Manufacturers Association, ADEFA, officially reported record production and exports in June and in the first half of the year” In June 80.800 cars rolled out of Argentine factories and 46.750 were exported and in the first six months, 392.300 and 242.250 units.

Furthermore the sources quoted indicated that the monitoring committee, agreed by both countries (Argentina and Brazil), reported that the number of Argentine cars in Brazilian ports waiting to be released “range 10.000 and not 40.000”.

“Brazil applies Non-Automatic import licenses to the whole car sector (mainly from Argentina, Mexico and Southeast Asia). So the introduction of cars to Brazil slowed down due to ports’ logistic issues, because that’s where cars from all over the world are waiting for their release into Brazilian territory”.

In reference to the alleged inconveniences suffered by Brazilian textiles, clothing and footwear in having access to the Argentine market, “real data shows there are no such problems”.

Regarding footwear “shoe-makers organizations from both countries have agreed that Brazil ships 15 million pairs to Argentina annually. The three year accord expires at the end of the year and there have been no inconveniences reported”, insisted Argentine sources. “This means Argentina releases the non automatic import licences for up to 15 million pairs per year”.

Clarin quoting ADEFA and Brazilian textile manufacturer’s association sources said that “the situation has not changed much since the last summit between Argentine industry minister Deborah Giorgi and her Brazilian counterpart Fernando Pimentel”.

According to Clarin’s ADEFA source “tens of thousands of Made in Argentina cars were blocked at the Brazilian border waiting for the paperwork. On Monday 5.000 licences were released but then the situation again shut down and now we have 40.000 cars waiting to cross”.

Clarin quotes Brazilian textile exporters who describe the situation as “very difficult” claming import licences take well over two months to be cleared by the Argentine bureaucracy. The situation is “critical” and none of the commitments agreed by Giorgi and Pimentel have been honoured, says Heitor Klein, CEO for the Brazilian Footwear industry association. “We have exports blocked since last March”.

Klein said that Brazil “was soft” with Argentina and committed a mistake on lifting trade reprisals at the end of May, beginning of June. “We need our government to apply the same measures the Argentines use against us. That’s the only language the Argentines understand”.

Last June 2, Giorgi and Pimentel in Brasilia agreed a good will understanding to make more flexible trade restrictions, and release at the most in 60 days, produce blocked at the border.

However Jose Augusto Castro head of the Brazilian Foreign Trade Association, AEB, pointed out that since nothing was signed, “in reality nothing has been solved”. Furthermore in the latest Mercosur summit in Paraguay, Brazil’s Industry minister Pimentel did not turn up.