Brazilian footwear manufacturers may seek safeguards

16/03/2006

Trade between Brazil and China jumped from $2.3 billion to $12.18 billion between 2000 and 2005 and although Chinese imports to Brazil rose from $1.22 billion in 2000 to $5.35 billion in 2005, Brazilian exports to China increased at an even faster rate reaching $6.83 billion in 2005 from $1.08 billion in 2000. Hence in terms of the trade balance with China, Brazil has moved from a deficit of $135.20 million to a surplus of $1.48 billion.

However, despite this positive trade balance, some Brazilian industrial sectors, including the footwear industry, claim that they are being affected by Chinese trade competition and, according to Soraya Rosar, coordinator of the Unit of International Negotiations in the National Confederation of Industry, these sectors are now preparing to request protection against Chinese imports.

In an interview with Brazilian news agency AgĂȘncia Brazil, Armando Maziat, secretary for Foreign Trade in the Ministry of Development, Industry, and Foreign Trade, said that "a large number of sectors have already registered complaints with the Secretariat of Foreign Trade."

The minister said that the government will try to negotiate a voluntary restriction agreement similar to the one agreed for the textile sector. However he added that negotiations may be far more difficult in other sectors. "The textile sector has been controlled historically, and trade has never been free. Maybe that is why the Chinese were willing to reach an agreement. When it comes to other products, however, the Chinese have always been more opposed to any type of agreement."