The proposal to create a financing mechanism for exports of Brazilian manufactured products to Argentina is positive for Brazil, the president of the Brazilian Association of Exporters, José Augusto de Castro, told CNN. On a trip to the neighboring country, the Lula government should present the idea to reinforce the commercial partnership between the countries.
“The expectation is positive because Argentines don’t buy more because they don’t have foreign currency. For many years the country was the main market for Brazilian manufactured products. Today we are in second place, we lost to China. Resuming this position will be good for the national industry”, the president of AEB told CNN.
China took the position of largest exporter to Argentina in 2021. The Chinese government directly finances Argentine importers, which has helped to improve trade performance between the two countries. José Augusto de Castro recalls that 10 years ago, Brazil exported around $20 billion a year to its neighbors. Currently, the account reaches US$ 15 billion, 95% of manufactured products.
The president of the AEB defends the government’s proposal for strategic reasons, such as logistics due to the proximity of the countries. He argues that the transport of goods to Argentina is mostly done by land. Second reason, for the strengthening of the transformation industry in Brazil.
“If we don’t improve payment conditions for Argentines, we could lose even more. By guaranteeing their purchasing capacity, Brazilian exporters are more secure and the country can generate more qualified jobs,” says José Augusto Castro.
According to reports made to the column by interlocutors of the economic team, the Brazilian government wants Brazilian banks, public and private, to carry out the operation with a Treasury guarantee, using resources from the Export Guarantee Fund, with guarantees. The consideration that will be required by Brazil are receivables from commercial contracts, for example, the sale of natural gas, or other commodities that have liquidity and prices formed in the international market.
Source: CNN Brasil
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
