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Argentina and Brazil agree to further integrate and prop their auto industries

Wednesday, April 30th 2014 - 09:22 UTC
Full article 18 comments

Argentina and Brazilian officials agreed to continue meeting regularly to solve as soon as possible bilateral trade problems mainly those referred to the auto industry. On Tuesday Argentine Finance minister Axel Kicillof and Industry minister Deborah Giorgi met their Brazilian counterparts, Guido Mantega and Mauro Borges in Brasilia. Read full article

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  • Klingon

    Just as I said.
    2 drunks in a bar buying each other beers and telling everyone how great they are doing.
    Nothing about looking for new markets for the auto makers.

    Apr 30th, 2014 - 11:18 am - Link - Report abuse 0
  • CabezaDura2

    1

    They are both inefficient and expensive countries to produce manufactured goods.
    They cant stand each other, but they can only limit to deal with themselves.

    But overall Brazil is kind of subsidizing Argentina, kind of like Argentina was subsidizing Brazil in the second half of 1990s after they abandomed the parity with the US dollar and Argentina bought all of their stuff.

    Apr 30th, 2014 - 12:24 pm - Link - Report abuse 0
  • Condorito

    Déjà vu.

    In a minute there will be some arguing about cars and some zealous patriot declaring that Argie cars are built to EU standards.

    @ Klingon
    I still like the joke.

    The problem in finding new markets is that the markets in the region are increasingly competitive.

    @CD
    They shouldn't be expensive countries. Both have low energy costs and low labour costs. The problems are elsewhere in the environment.

    Apr 30th, 2014 - 01:06 pm - Link - Report abuse 0
  • Briton

    Argentina and Brazil agree to further integrate

    what are the possibilities of a united one country,
    just asking..

    Apr 30th, 2014 - 01:06 pm - Link - Report abuse 0
  • Condorito

    @4
    About as likely as a united Europe.

    Apr 30th, 2014 - 01:32 pm - Link - Report abuse 0
  • Briton

    mmmmm

    Apr 30th, 2014 - 01:58 pm - Link - Report abuse 0
  • CabezaDura2

    3

    its not cheap, Argentine labour is expensive in white and energy costs is subsidized. What you save in fake energy cost you have to pay in taxes.

    Aportes patronales are ridiculously high.
    For every lorry you hire you have to pay 36% of the total cost between the State and the Union of Camioneros that belongs to Moyano.

    There is also the inconsistencies of having a container moved from Mendoza to the port of Rosario is more expensive than to move it from the port of Rosario to Shangai.

    What these governments like the Brazilian and Argentine do typically is adjust competitiveness by inflation that forces devaluation. But the inefficiencies always remain

    Apr 30th, 2014 - 03:29 pm - Link - Report abuse 0
  • Condorito

    @CD
    I agree it is a false economy to subsidize energy costs, but it does reduce the energy cost for the auto industry (they don't care if the public pay for it).

    Why do you say labour is expensive? Salaries in Argentina are much lower than in the car manufacturers' home nations.

    The transport problems you mention are madness. These are some of the environmental idiosyncrasies that create so much inefficiency.

    Apr 30th, 2014 - 06:19 pm - Link - Report abuse 0
  • yankeeboy

    I think corporations pay a very high rate for energy in Argentina PLUS, and I think it is even more important, whenever there is a supply problem they shut them off!

    Apr 30th, 2014 - 06:26 pm - Link - Report abuse 0
  • Brasileiro

    @4 Briton

    Brazil and Argentina have very strong and integrated economic interests.
    The policy can not be dissociated from the economic world because people may suffer and bring down politicians. So I would say that Brazil and Argentina are already a single country in fact, soon will also be right.

    https://www.youtube.com/watch?v=1pONGn5esgk

    Apr 30th, 2014 - 08:12 pm - Link - Report abuse 0
  • *~TROLLING_CEASE_FIRE~*

    @3

    Low labor costs?

    You talk as if Chilean labor costs were so much higher or developed. You are a POOR country, don't forget that while you go away commenting on everyone but Chile.

    May 01st, 2014 - 12:43 am - Link - Report abuse 0
  • yankeeboy

    I will be curious to see if the Auto companies stay if they still can't repatriate their money when the agreement runs out in Aug ( I think).
    There's no reason to be there if they can't take their profits out.
    Plus how in the world can you run a factory, or any business for that matter, when you don't know if they are going to allow parts to be imported, energy will get cut off whenever its hot or cold and inflation is eating away at you month in and month out.
    There is just no reason to mfg in Arg.
    Just no reason.

    May 01st, 2014 - 01:18 am - Link - Report abuse 0
  • Brasileiro

    The cars are ours. Produced with our steel, our flex fuel motors.

    Our parts, our taxes, our jobs, our laws,

    “Nossos lucros”

    May 01st, 2014 - 01:38 am - Link - Report abuse 0
  • CabezaDura2

    13

    Our this, our that..
    Yet you dont want our pesos and we dont want your reales.

    May 01st, 2014 - 02:00 am - Link - Report abuse 0
  • Brasileiro

    Hahaha, The Problem! hahahaha

    May 01st, 2014 - 02:19 am - Link - Report abuse 0
  • Keith York

    Both worthless...

    May 01st, 2014 - 05:35 am - Link - Report abuse 0
  • Mendoza Canadian

    And CFK blames Brasil for all its problems in the auto sector...of course. She and her governments policies are never to blame for anything. http://www.mdzol.com/nota/530729-cristina-culpo-a-brasil-por-la-caida-de-ventas-de-vehiculos/

    May 01st, 2014 - 11:55 am - Link - Report abuse 0
  • yankeeboy

    13. Like all Marxist Monkeys you don't know the difference between public and private property.
    That is why your economy fails every decade or so.

    May 01st, 2014 - 12:00 pm - Link - Report abuse 0

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