In addition to the two markets, the CNI is also monitoring the negotiation of international agreements that could benefit the Brazilian productive sector with the European Union and Mercosur.
The National Confederation of Industry (CNI) follows the negotiation of international agreements that may benefit the Brazilian productive sector, such as the Brazil-Mexico, Brazil-Argentina and European Union-Mercosur negotiations.
Paralysed last year, Brazil and Mexico have resumed negotiations this year. The objective is to expand the list of tariff-free products in trade between the two countries and to facilitate and stimulate the exchange of goods, especially in the automotive sector. CNI studies indicate that with an agreement, Brazilian industrial sales to Mexico could increase by 40 per cent. Partnerships of this nature will help Brazil in its economic recovery and, for Mexico, can reduce dependence on the United States.
For the executive manager of International Business of CNI, Soraya Rosar, the scenario is favourable to Brazil. “President Donald Trump has announced that he will review the North American Free Trade Agreement (NAFTA), leading Mexico to seek alternatives.” A great opportunity for Brazil, “he says.
The European Union-Mercosur negotiations have been going on for 20 years. There has been a recent breakthrough, with a meeting between negotiators of the two, in Buenos Aires (Argentina) in May.
The expectation of the Mercosur countries is that there is an understanding of this in 2017, at least regarding the political framework of the Eventual treaty. “Mercosur has been pushing for the political agreement to occur by the end of the year. The deadline is October,” emphasizes Soraya.
As for the Brazil-Argentina agreement, UIA decided to create the Brazil-Argentina Business Council (CEMBRAR) in the second half of 2016. The objective is to identify common business opportunities and policies that governments can adopt, to foster in the public sector and in the private sector. In the first five months of 2017, sales to Argentina grew 26.7 per cent over the same period last year.
In June, the first meeting of the Brazilian section of CEMBRAR was held, with the participation of 58 companies and sectoral associations in an effort to improve the business environment between the two largest Mercosur economies.
“CEMBRAR will work to reduce barriers.” Some sectors, such as textiles, chemicals, aluminum, animal protein and food products have already reported barriers that include technical regulations, sanitary issues and labelling, “says CNI ‘ S Commercial Policy Manager, Constanza Negri.