Lula restates support for common currency and credit line for Brazil-Argentina exports

President Luiz Inácio Lula da Silva defended again, on Monday (26), the adoption of a common currency with Argentina and the encouragement of credit release for Brazilian exports to the neighboring country.

The president also mentioned that the BNDES (National Bank for Economic and Social Development) could finance a gas pipeline in Argentina as part of a comprehensive list of nearly 100 points that will relaunch the strategic partnership between the two nations.

Lula’s statement took place after a meeting with the Argentine president Alberto Fernández at the Itamaraty headquarters in Brasilia. This is Fernández’s fourth visit since Lula’s election and coincides with the celebration of the 200th anniversary of diplomatic relations between the two countries.

“We need to move in this direction, exploring innovative solutions to promote greater financial integration and facilitate trade. One option is adopting a specific reference common currency for regional trade without eliminating our respective national currencies,” Lula told journalists.

“Today, we have embraced an ambitious action plan to revitalize our strategic alliance. It encompasses nearly 100 measures that give form to our joint development project,” said Lula. “I am thrilled with the prospects of BNDES financing the export of products used in the Nestor Kirschner pipeline.”

The following chart displays the monthly exports of containerized cargo from Brazil to Argentina, as well as the quantity of TEUs that complete the journey after leaving Argentina’s maritime ports. The data below was gathered using Datamar’s foreign trade intelligence service DataLiner.

Brazil-Argentina Containerized Trade | Jan 2019 – Apr 2023 | TEU

Source: DataLiner (click here to request a demo)

“We are actively working on establishing a comprehensive financing line for Brazilian exports to Argentina. It is nonsensical for Brazil to lose market share in Argentina to other countries simply because they offer credit while we do not. This should be a win-win situation for Brazilian companies, workers, and Argentine consumers.”

Following the statements, Fernández was honored with the Grand Collar of the National Order of the Southern Cross. At the same time, the Argentine First Lady, Fabiola Yáñez, received the Grand Cross of the Order of Rio Branco.

Argentina is betting on the construction of the gas pipeline to achieve energy self-sufficiency by 2025 and alleviate its severe economic crisis. This would enable the government to reduce imports and address the dollar shortage that fuels high inflation.

The first section of the gas pipeline commenced operations last Tuesday (20).

Folha de S. Paulo

Para ler a matéria original, acesse: https://www1.folha.uol.com.br/mercado/2023/06/lula-volta-a-defender-moeda-comum-e-credito-para-exportacoes-do-brasil-para-argentina.shtml

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