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Argentina & Brazil sign agreement denim jeans export

Sep '05
Textile sector entrepreneurs of Brazil and Argentina renewed last week the voluntary limitation agreement, regarding to denim exporting from Brazil.

The fabric is utilized in jeans manufacture and represents about 10% of the bilateral textile commerce. According to Fernando Pimentel, Superintendent Director of Abit (The Textile Industry Brazilian Association) the agreement foresees the exporting of 15.8 million linear meters of denim, from Brazil to Argentina, in 2005. The volume is a little higher than the 15 million linear meters established in 2004.

Last year, Brazil exceeded the limit by few points and exported 15.6 million linear meters to Argentina. In turn, the Mercosul partner also breached the commitment of importing only 1% of the total consumption of third origins for the country, acquiring 1.5% of this total. Both sides are happy with the results of the agreement, affirms Pimentel.

A voluntary restriction agreement for Brazilian exporting of cotton velvet was recently agreed, also. Entrepreneurs divided the Argentinean market: 3 million linear meters for the local industry, 3 million for Brazil and 3 million for third parties. In 2004, Brazilian and Argentinean entrepreneurs also signed a voluntary restriction agreement for Brazilian exports of acrylic thread, polypropylene carpets and dyed thread fabrics. But Argentineans showed no interest in renewing these agreements, this year.

Other sensitive sector in the bilateral trade is the shoes sector. Brazilian entrepreneurs refuse to accept quotas and Argentina threats to impose restrictions to Brazilian exports. A meeting between the private sector and the Government shall happen between May 16th and 20th. Last year, shoes exporting to Argentina reached 15.3 million pairs of shoes. For Argentina, this should have been limited to 13 million.

Brazilian Textile and Apparel Industry Association

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