Uruguayan president Jose Mujica admitted a certain ‘stinging feeling’ following the recent Brazilian decision to increase import taxes on vehicles by 30%, which could also have an impact on Mercosur partners.
The Brazilian government will propose before the World Trade Organization the implementation of import barriers to compensate for the growing penetration of foreign produce spurred by the sustained devaluation of the US dollars in recent years, said Industry Minister Fernando Pimentel.
Brazil on Thursday raised a tax on cars with a high content of imported components to protect jobs following a surge in shipments from China and elsewhere that has been fueled by a rally in the currency.
Brazilian officials brushed aside claims from exporters that the country has been ‘soft’ on Argentina and on imports from Asia, mainly China, arguing that trade figures indicate something different and “you can’t have it both ways, liberal and protectionist”.
Argentina's trade surplus fell 22% on the year in June. Trade surplus last month 1.02 billion dollars, down from a revised 1.31 billion in June 2010, according to the national statistics agency, Indec.
Fiat will trim some production in Brazil and Argentina for a week because of a trade spat between the South American neighbours, the Italian car maker said on Friday.
Brazil is tightening requirements for imports of cars in a move that sparked complaints from Argentina, its biggest supplier of the product. Imports to Brazil will need a special license that can take as long as 60 days to be approved, the Trade Ministry said in an e-mailed statement.
Argentina's industrial output rose sharply and the trade surplus beat market expectations during the month of February signalling that the economy is still growing strong.
Uruguay’s cabinet meeting spokesperson confirmed Wednesday that Argentina had “liberated” 75% of the import licences that remained delayed and which was one of the main points of the agenda in the recent summit between Uruguayan president Jose Mujica and Argentina’s Cristina Fernandez de Kirchner.
Imports restrictions imposed this week by the Argentine government with the purpose of “preserving the re-industrialization process” cover approximately 200 products totalling annual imports of a billion US dollars, according to preliminary reports.