The government of Lula da Silva estimates that the new European Union, EU, anti-deforestation law will have a 34% impact on Brazilian exports to Europe and 15% on the country’s total exports. Folha de Sao Paulo informed the measure applies to products in the supply chains of coffee, soy, palm oil, wood, leather, beef, cocoa, and rubber.
Brazil recorded in April its third trade deficit in four months, trade ministry data showed on Thursday, another weak result that reflects the deterioration of the country's trade balance due to a sluggish global economy and struggling local industry.
Brazil’s industrial output shrank more than expected in February, reversing most of the previous month’s gains and casting fresh doubt over the health of an anaemic recovery in the struggling sector.
President Cristina Fernandez hopes to convince Brazil to join Argentina in its campaign against the multinational corporations in an effort to balance trade balances in the midst of the global crisis spurred by the Euro crisis, China’s slow reaction and the US economy which still has to recover from the full impact of the 2008/09 recession.
The meeting between Argentine and Brazilian officials to discuss the new trade legislation implemented by the government of President Cristina Fernandez ended in a “good understanding”, said participants of the Monday meeting.
Brazilian Secretary of Foreign Trade Tatiana Prazeres will be travelling to Buenos Aires next Monday to address with Argentine counterparts the extent of the last set of measures implemented by the administration of President Cristina Fernandez to slow down the flow of imports.
The Brazilian government expressed concerns over the new Argentine trade barriers going in effect on Wednesday and informed that it would “evaluate its impact and legality” before making any decisions, Foreign Trade secretary Tatiana Prazeres announced.
Brazil's trade surplus grew more than expected in August as the value of exports climbed to its highest this year, outpacing strong import growth.