Argentina’s debt problems threatens to worsen trade tensions in Mercosur, adding to the economic woes of Brazil in a tense election year and causing headaches in Uruguay as the Argentine economy looks likely to plunge deeper into recession.
The logistics chaos in the Brazilian port of Santos (one of the busiest of the country) in mid March with the first shipments of a record soy crop will become even worse in May and June, according to the Jose Augusto de Castro, president of the Brazilian Association of Foreign Trade, AEB.
Brazilian businesspeople and diplomats expressed their disappointment with Mercosur and said it was crucial for Brazil to sign free trade agreements on its own with third countries, which under current rules of the South American trade block are not allowed.
The increase in imports during the first quarter of this year could indicate Brazil has begun a de-industrialization process, cautioned Jose Augusto de Castro, president of the country’s Foreign Trade Association, AEB.