Brazil, China airs differences over trade
BRASILIA, Brazil
Brazil and China aired their differences over their ballooning multi-billion trade relationship during a high-level meeting attended by Chinese Vice Premier Wang Qishan here Monday.
Brazil is pushing for greater access for some of its products in China, which in 2009 overtook the United States to become Brazil’s largest trading partner, with bilateral trade reaching US$77 billion ($6.65 trillion) last year.
Beijing is now also the largest investor in the South American nation, with Brazil enjoying a trade surplus of some US$11.5 billion.
“We are discussing some issues of concern to Brazilian industry, such as Brazilian exports of manufactured goods to China and also a future voluntary” reduction of Chinese exports to Brazil, Brazilian Vice President Michel Temer said after the talks here.
Iron ore and soybeans represent more than 80 per cent of Brazil’s exports to China, which in turn sells mostly manufactured goods to its fellow member in the so-called BRICS group of emerging powers — Brazil, Russia, India, China and South Africa.
But Brazilian manufacturers have been complaining about the influx of cheap Chinese imports and want the high-level bilateral commission to tackle such issues.
Brasilia wants China to open its doors wider to Brazilian manufactured goods and limit its massive exports of shoes, textiles and other products such autos that have been flooding into this country, a foreign ministry source here said.
“Brazil needs to seek greater penetration of its manufactured goods in China,” the chief economist of National Confederation of Industry, Flavio Castelo Branco, told AFP.
A senior Brazilian official said the sharp increase in imports of cheap Chinese products and access to the Chinese market for Brazilian manufactured goods “is an urgent problem which needs to be tackled.”
He added that “the Chinese government signaled that it plans to act.”
Wang, who earlier Monday called on President Dilma Rousseff, stressed that China planned to “enhance trade rules” and said the Chinese side would keep on increasing the introduction of Brazilian high value added products.”
Vice President Temer said his side specifically pressed for greater access for Brazilian meat products, executive jets from leading Brazilian aircraft manufacturer Embraer and permission for Brazilian companies such as bus makers Marcopolo to set up shop in China.
The ministry source said the Chinese side meanwhile expressed concern about the recent imposition by Brazil of 30 per cent tariffs on imported cars. Brazil hiked its tariffs after Chinese car imports rose nearly 600 per cent between 2010 and 2011, according to a recent report by the Brazil China Chamber of Commerce.
Top Chinese auto makers recently announced they planned to assemble their vehicles in Brazil.
Wang also said the two sides expressed interest in increasing bilateral investments and “promoting the use of national currencies in bilateral trade,” an idea under discussion for several years.
Brazil is the world’s sixth largest economy, while China is the second biggest behind the United States.
AFP