MercoPress. South Atlantic News Agency

Brazil is a “decisive partner” for Argentina in the event of a major crisis

Feletti admits the Brazilian dependency of the Argentine economy

For Argentina, Brazil is a “decisive partner” in addressing the negative effects of the world economic crisis which has hit the United States and the European Union, said on Monday Argentina’s Deputy Economy minister Roberto Feletti.

“Argentina is well placed economically, but if the global situation worsens, it must gear its economy towards the domestic market and trade with Brazil and other countries of the region”, said Feletti.

“The link with Brazil is decisive for Argentina in what refers to industry, to exports, but also in the political field. Currently no one in his right mind can have political aspirations if he/she does not contemplate a South American integration and a close relation with Brazil” underlined the Argentine official speaking to a local Buenos Aires radio.

Brazil purchases annually from Argentina in the range of 20 billion dollars, recalled Feletti who also said that UNASUR (Union of South American Nations) Finance ministers are working on a mechanism to protect the region from the effects in the event of a worsening situation in the Euro and dollar zones.

If the crisis worsens “Argentina will have to replace overseas sales with domestic market sales, with domestic supply and sales to the regional block” as it did successfully in 2009 said the Argentine minister.

“That is why we convened and met with all South America Finance ministers last month in Buenos Aires to analyze a common strategy”.

Feletti finally underlined that Argentina feels calm, “we have little debt, good level of foreign exchange reserves, surplus in its trade accounts and we are not exposed to a financial attack: there are no chances for that”.