Cotton, footwear quotas may rule bilateral trade relations with Argentina

05 Jul '05

1 min read

Terming it "inevitable," Brazil will soon introduce trade safeguards over Mercosur members' and Argentina, in particular, reported Sao Paulo based financial press.

Quoting unidentified sources, the media said in order to protect the local industry, measures are being mooted and governments of Argentina and Brazil will soon enter in to formal talks.

An “informal” quota system is already adopted by businessmen from the two countries dealing in products such as refrigerators and foot wear.

Even the Governments of both the countries have expressed keen desire to come on the negotiating table and address all issues pertaining to the safeguards.

The Competitiveness Adaptation Clause - CAC as suggested by Argentine Finance Minister Roberto Lavagna, who believes that if in the event of unregulated rise in imports from one of the two major Mercosur partners occurs, the quota system will be promulgated.

Argentine industry has been continously protesting against import of Brazilian industrial goods like home appliances, footwear, cotton goods etc as they are perceived to potentially harm domestic producers.

On the other side, Brazilian farmers have many a times road blocked Argentine trucks loaded with rice, wines and fruit to save their farmer community.

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