Argentina accused of undue delay in allowing Brazilian imports to enter

According to a report published by the newspaper O Globo, since the beginning of the year, the Argentine government has been taking longer and longer to release the entry of Brazilian imports, in breach of the rules of the World Trade Organization (WTO) and the bilateral agreement sealed between both countries.

In recent weeks, delays have intensified and led the National Association of Automotive Vehicle Manufacturers (Anfavea) to inform the Brazilian government about the fact. According to Brazilian government sources, approximately US$100 million in Brazilian exports from the sector are being held up at the border awaiting approval of the so-called non-automatic import licenses.  According to the WTO, the maximum deadline for giving the green light to non-automatic licenses is 60 days. The understanding between the two governments, which foresees the total liberalization of the vehicle trade by June 2029, establishes a limit of ten days. In recent months, however, some delays exceed 90 days.

“We understand the difficulties in Argentina due to the scarcity of foreign exchange, but agreements are agreements – said the president of Anfavea, Luis Carlos Moraes, in an interview with O Globo.  According to him, this scarcity of foreign exchange in the neighboring country (today Argentines can buy only US$200 per month and there are rumors that the limit could be reduced) ended up creating a system of managed trade. “We are concerned because this type of restriction affects the sector’s predictability and planning. We have an integrated production system in Mercosur”, he recalled.

The tension due to barriers to imports from the automobile sector came to light at times when the Fernández government, through its new ambassador in Brasilia, Daniel Scioli, has been showing a strong interest in working with the Brazilian government to reactivate trade. In less than two weeks, Scioli was received by President Bolsonaro, Chancellor Ernesto Araújo, and Agriculture Minister Tereza Cristina, among other meetings. Everyone expressed his country’s desire to balance the trade balance, since in the last 15 years Argentina has accumulated a deficit with Brazil of US$52 billion.

Asked about the delay in delivering import licenses to automakers with operations in Brazil, a source at the Argentine embassy said that throughout this year licenses for Brazilian imports totaling US$5 billion were approved, of which US$993 million was not used.

“We are taking care of the doubts about possible delays. We have already had meetings with the companies and there will be a new round in October. We are aware of the concern and we are in permanent contact with the Brazilian government”, assured the source. According to her, “about 92% of requests for non-automatic licenses are authorized in less than 72 hours, and a balance remains that is pending due to some inconsistency or lack of information”.

On the Brazilian side, arrangements were made with the Argentine Industry Secretariat, but so far there has been no satisfactory response, a source said.

Source: O Globo