Brazil-Argentina trade and its new perspectives for 2021
As part of the virtual meeting of Cembrar (Brazil-Argentina Business Council), a joint statement between the CNI (National Confederation of Industry) and the UIA (Argentine Industrial Union) was released on June 10, which provides for a series of priority measures to be applied in the second half of 2021, with the aim of promoting the recovery of bilateral trade between the two countries, as well as engendering actions to stimulate Mercosur integration, in light of the crisis caused by COVID-19.
The importance of Cembrar in promoting commercial benefits
Cembrar was created in 2016, with the aim of promoting opportunities for public and private cooperation between Brazil and Argentina. The council has already played an important role in the approval of several measures that encourage trade between the two countries, such as the General Framework for Trade Facilitating Initiatives in Mercosur and the Protocol on Cooperation and Facilitation of Intra-Mercosur Investments. Currently, it is expected that the series of measures provided for in the declaration will bring benefits to bilateral trade between the countries and even the future negotiation of new trade agreements, according to the Argentine ambassador to Brazil, Daniel Scioli, who also highlights the recovery of trade with Brazil as one of Argentina's current priorities.
Priorities highlighted by the declaration
Among the priorities for the Brazil-Argentina relationship, the declaration highlights: trade facilitation measures, which allow for the creation of a mechanism to monitor any difficulties or barriers to the circulation of goods between countries; regulatory convergence between Brazil and Argentina aimed at reducing and even eliminating trade barriers; and managing, with the governments of both countries, the promotion of the use of electronic documents in bilateral import and export processes.
Benefits of internationalization for Argentina
Over the past two decades, Argentina stands out for being among the five main trade partners in Brazil, according to data from the Atlas of Economic Complexity. Furthermore, according to Santander Trade, Brazil is the country's main trading partner. Furthermore, the Mercosur countries, and in particular Argentina, provide Brazilian businessmen who wish to internationalize their products a series of benefits, such as distance, which is also an important factor in reducing costs for small and medium-sized companies, such as taxes. reduced, the facility for Brazilian exporters to obtain credit lines, and also the reduced bureaucracy, for example, through the digital issuance of the Certificate of Origin, among other aspects.
Bilateral trade perspectives and the importance of international consultancy assistance
Despite the drop caused by the pandemic, Brazilian exports to Argentina totaled US$897 million in April 2021, 82% more than in the same month last year, according to the Argentine Chamber of Commerce and Services. Furthermore, with the new measures to be taken by Cembrar in the second half of the year, expectations are for even greater advances in this bilateral trade. From this, it is important to highlight that the performance of a specialized international consultancy is essential so that the export strategy for Argentina is elaborated as efficiently as possible, based on a detailed market analysis of the country and also a mapping. regulations and tariffs, which is essential for understanding the new mechanisms that will possibly be implemented in the commercial exchange process.
By Giovanna Relva on 06/23/2021