Brasília expects exports to Argentina to increase after negotiations

The Brazilian government believes it has got the right tone (“ter acertado o tom”) in trade negotiations with Argentina. As a result, there are hopes that sales to Buenos Aires will expand in the near future. That is the opinion of Alessandro Teixeira, the executive secretary at the Ministry of Development, Industry and Foreign Trade.

Teixeira says he is now negotiating with Guillermo Moreno, the Argentine secretary of Interior Commerce, in what he calls “an objective relationship.”

“We expect to have positive results this month (July) with the liberation of farm and manufactured goods. The international situation is responsible for many of our difficulties; it has caused problems for Argentina and for us,” said Teixeira.

Argentina imposed restrictions on imports with the result that for the first half of this year Brazil’s exports to its neighbor were down 16%. However, in the first week of July, barriers on pork were lifted and exports surged. Just in the first three days of July pork sales to Argentina were up 226%, compared to June.

At the same time, Argentina issued 229 import licenses for Brazilian farm equipment. “This is a good sign. The liberation of these products is an important result,” said the executive secretary, adding that Brasilia was monitoring the trade situation with Argentina on a daily basis. “We have made progress. We do not know how long this situation will continue or if they will place more restrictions in the future. I don’t know. Whatever happens, our work is constant.”

Between January and June last year, Brazil exported goods worth $10.43 billion to Argentina. This year, during the same period, the value of goods sold to Argentina was $1.6 billion less.