MercoPress. South Atlantic News Agency

Brazil claims trade situation with Argentina is “less than satisfactory”

Dilma Rousseff and Cristina Fernandez are scheduled to hold a meeting to address “trade differences”

Brazil admitted that the trade situation with Argentina is “less than satisfactory”, given the ongoing barriers and restrictions imposed by Buenos Aires and revealed that the bilateral trade balance is now inclined in favour of its southern neighbour and Mercosur associate.

“We’re not doing that bad, but there are areas with problems which require greater attention“, said Brazilian Foreign minister Antonio Patriota, before Congress.

Patriota admitted that Brazilian exports to Argentina have fallen ‘significantly’ in recent months to the extent that in the first quarter of this year the bilateral trade balance is negative for Brazil in 82 million dollars.

This compares with the overall surplus for Brazil last year of 1.5 billion dollars. The minister added that Brazilian exports to Argentina, its main trade partner in Latin America and Mercosur dropped 22% in 2012 and continued to fall in the first quarter of this year.

“The footwear and textiles have been hit particularly hard by the restrictive measures” from the Argentine government, recalling the controversial system of non automatic import licences.

Patriota added that in recent weeks “we have received concern warnings” because of the alleged “benefits to third countries” implemented by Argentina. The minister was referring to claims from Brazilian manufacturers that Argentina was offering China a raft of trade benefits as part of President Cristina Fernandez administration policy of liberating certain imports to help combat inflation.

“If this deviation of trade is effectively proved it would be contrary to the attempts to reinvigorate Mercosur”, underlined Patriota, who revealed that trade issues will be “top of the agenda” during a coming meeting of President Dilma Rousseff with her Argentine peer Cristina Fernandez in a date yet to be confirmed.

The meeting was originally planned for March 7, in Calafate, Argentine Patagonia but had to be cancelled because of the death of Venezuelan president Hugo Chavez a couple of days before.

Nevertheless Patriota said that despite the trade differences, “political dialogue with Argentina and between both governments is constant and of the highest quality”.

For Brazilian diplomacy “there is no other plan but a strong association and ever more consolidated of Brazil with Argentina”.