MercoPress, en Español

Montevideo, September 28th 2022 - 22:05 UTC

 

 

Brazil and Argentina working to find a long-standing agreement on trade, says Marco Aurelio

Monday, May 6th 2013 - 00:48 UTC
Full article 24 comments
Garcia has been the trouble-shooter for Lula da Silva and Dilma Rousseff administrations Garcia has been the trouble-shooter for Lula da Silva and Dilma Rousseff administrations

Brazil and Argentina are trying to address their economic and trade differences so that they can reach a long-standing, long term solution, said Marco Aurelio García, the Brazilian Executive advisor on foreign issues and trouble shooter for this kind of conflicts.

“What we are doing is trying to reach a long standing, deep solution to these differences in our economic relations, because we need to preserve the bilateral relation which is strategic for Brazil”, said Garcia in an interview with the Argentine pro-government daily Pagina 12.

Garcia admitted that “the implementation of certain barriers to Brazilian produce is not good. But it’s also something we have to resolve jointly. It’s hard to visualize Argentina and Brazil each running on their own, we are strategic both ways”.

Discrepancies between the two major South American economies were addressed by President Dilma Rousseff and her peer Cristina Fernandez during her scheduled two-day visit to Buenos Aires last April 25, but which ended in frustration and the Brazilian leader cutting her visit short to one day.

The Brazilian manufacturing sector is extremely disappointed with Argentina’s restrictions which have seen sales drop 20% in the last twelve months, while China’s exports have increased 8%.

Argentina on its side can’t swallow the fact that the Brazilian minerals’ giant Vale has decided to drop their massive 6 billion dollars project to develop potassium deposits in Mendoza, Argentina’s largest investment in recent years. But the Brazilian company complains that costs have doubled to 12 billion dollars because of inflation (24%) and the foreign money exchange policy which has a 90% gap between the official and parallel markets.

Besides, according to Vale, nor the federal or the provincial governments kept their promises relative to fiscal and credit incentives, and their top officials (and families) have received death threats since the company decided to review the whole project last December.

But despite the differences the two countries are closely linked. Argentina is Brazil’s third trading partner behind China and the US while for Argentina, Brazil is its main market for exports (particularly manufactured goods) following by China, Chile and the US. The two countries also have close complementation and integration agreements in the automobile and auto-parts industries.

However during the April 25 frustrated bilateral summit, political issues were added to the discrepancies, according to the Sao Paulo media, Brazil (and the US) are concerned with the ‘Chavez path’ which the government of Cristina Fernandez seems to have adopted lately particularly with its insistence on the judicial reform and advances on the independent media.
 

Top Comments

Disclaimer & comment rules
  • Porto Margaret

    Marco Aurelio García a word of advice, not that you really need it.

    You are dealing with the Pinocho clique! They're going to break their word and it will be all Brazils fault.

    Well I have warned you. Que Será, Será.

    May 06th, 2013 - 01:17 am 0
  • Baxter

    Well ,he is now admitting that the recent meeting between the two presidents was not a succees and is trying to calm the stormy waters . Unfortunately he is totally incapable of calming anything . He has just insulted the President of Paraguay accusing him of ousting Lugo when that was done by Congress . One would think that after free elections in Paraguay he would try to reach a friendly agreement with the elected President . Instead he insults the current President and insists that Paraguay accept Venezuela as a member of Mercosur as a condition to renter that club ! But then one remembers that this was the man who involved Brazil in an incredibly stupid game with Iran , while Lula was President , which infuriated countries trying to come to a sensible nuclear deal with Iran . Will somebody please ask him to resign !

    May 06th, 2013 - 03:04 am 0
  • Troy Tempest

    @2 Baxter

    It will be interesting to see if Brazil adheres to moral principles given what has been said:

    ”However during the April 25 frustrated bilateral summit, political issues were added to the discrepancies, according to the Sao Paulo media, Brazil (and the US) are concerned with the ‘Chavez path’ which the government of Cristina Fernandez seems to have adopted lately particularly with its insistence on the judicial reform and advances on the independent media.”

    May 06th, 2013 - 03:07 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!