Impacts of the end of Brazil’s maritime agreements with Argentina and Uruguay

In February 2021, the Chamber of Foreign Trade (CAMEX) made the decision not to renew bilateral maritime agreements with Argentina and Uruguay and communicated to the authorities of the respective countries about the choice. In summary, the pacts provided for exclusivity on commercial transactions by sea between Brazil-Argentina and Brazil-Uruguay, i.e., the movement of goods between the countries’ ports should preferably be done on ships registered in one of the nations. With Argentina, the agreement has been in force since 1985, and with Uruguay, it has been in force since 1976. Both remain in force until January 2022, but there is some interest in renewing these contracts.

In 2019, about 40% of Brazil’s exports to Uruguay were transported by sea, according to the Special Secretariat for Productivity, Employment, and Competitiveness of the Ministry of Economy. From Brazil to Argentina, the figure rises to 46%. This means that the opinion is of special interest for parties involved in this process, provoking different opinions.

According to Natasha Martins do Valle Miranda, Executive Secretary of the Ministry of Economy’s National Council for Processing and Export Zones, what motivated the end of the agreements was the increase in the cost of transporting goods between the signatory countries. In a debate conducted by Instituto Besc de Humanities and Economics, she also argued that “in addition to the competition issues, our analysis is based on principles and regulations of the Organization for Economic Cooperation and Development (OECD). Everyone knows that both Brazil and Argentina are claiming a place in the organization. And if one of the two makes it, we will not be able to keep this agreement. Therefore, we, the government as a whole, have to look towards the OECD to bring our [legal] process closer to that of the organization.

Source: Terra

To read the full original article, access the link below:

https://www.terra.com.br/noticias/dino/impactos-do-fim-dos-acordos-maritimos-do-brasil-com-argentina-e-uruguai,490e4cccbd9eb86289e9ffa4d5c0b770no2n15tz.html

Sharing is caring!