Brazil'S Trade Protection Measures &Nbsp; China'S Worst Victim

On the 6 day, the Brazil Foreign Trade Commission announced a series of measures to restrict imports so as to protect its industries.

Looking at the content of the measures, China's exports to Brazil bear the brunt.

"Made in China" commodities have indeed entered the Brazil market, but in the face of competition, it is self-evident whether protectionism is useful in the long run.

Some analysts said that Brazil could not prevent the appreciation of its currency, but had to turn to a trade protection policy.

On the 6 day, the Brazil Foreign Trade Commission announced that it would take a series of measures to restrict imports from now on to protect its industries.

There are two main measures, one is to increase tariffs on 7 kinds of imported goods; the two is to impose anti-dumping sanctions on certain imports.

Analysts pointed out that the Brazil government obviously targeted the Chinese products as the main target.

Chinese products are hurt.

The news came out, and a lot of multimedia exclaimed: "China has become the Brazil.

According to media reports, the products that increase tariffs mainly include 7 kinds of commodities, such as bicycles and air conditioners. Among them, the main importers of 5 commodities are China, including ceramic tiles (from 15% to 35%), bicycles (from 20% to 35%) and split air conditioners (from 18% to 35%).

In addition to raising tariffs on various commodities, the Brazil government will also impose anti-dumping sanctions against carbon steel pipes from China.

In the next two years, a $743 punitive duty will be imposed on imports of carbon steel pipes from China, equivalent to 80% higher than the current price.

Anti dumping sanctions also include products from other countries, such as crude salt produced in Chile, which will be subject to 35% punitive tariffs.

Brazil's Ministry of industry and Trade said that the government is still carrying out anti-dumping investigations against a large number of imported products, so some foreign products will be punished in the future.

Tatiana Prazle, head of Brazil's Foreign Trade Commission, said: "in

Brazil's trade protection rises early.

Brazil's trade protectionism has long been on the rise.

In August 5th, President Rousseff of Brazil issued a new policy for domestic industrial enterprises, aiming to foster domestic enterprises by reducing taxes, providing low interest credit, and giving priority to the procurement of domestic products by the government.

Rousseff said: "cheap but not always high-quality imports have grabbed Brazil's domestic market."

In response to this problem, Wu Hongying, an expert on Latin American issues at the China Institute of international relations, said that Brazil has been in the most recent period.

A group of data shows that in the first few months of this year, the slowdown of industrial production in Brazil is very obvious. In June, the industrial production decreased by 1.6%, while in July it increased by 2.2%, but it still fell 9.9% compared with the same period last year.

Currency appreciation induces protectionism

Another important reason to enticing Brazil's government to release trade protection policy is the constant appreciation of the Brazil currency, Real.

Real, the Brazil currency, has appreciated by 40% of the dollar since 2008, and Real has even appreciated more than 2 times if it was based on 2002.

Currency appreciation makes exports difficult and imports have an increasing trend.

Claudia Sakuraba's experience in the carnival gift shop in St Paul is a microcosm.

She imported a lot of textiles from China, which is 40% cheaper than Brazil.

"Real continues to appreciate, and the depreciation of the US dollar is reflected in the industry related to Carnival, and so does other industries."

She said.

This was not the case when he opened shop in 2005.

At that time, Real's ratio to the US dollar was 2.5. She only imported 30% of the goods. Now Real has surged to 1.6 against the US dollar, and she imports about 60% of the goods.

"Of course, it is not entirely a question of exchange rate," she said.

Over the years, the textile industry is short of new equipment and new investment. "

In addition to small commodities, the share of imported machinery in Brazil increased from 15% in 2006 to 50%, and imported cars rose from 10% in 2006 to 25% now.

Even steel is losing competitiveness because of currency appreciation.

Some primary products, such as the shoemaking industry with more than 8000 factories and 360 thousand workers, have also entered the "cold winter" because of the bad external economic situation and the appreciation of the local currency. It is reported that the export of shoe making industry has dropped by 26% in the first 7 months of this year.

The US financial media believe that some of Brazil's industrial base is relatively weak. The appreciation of the currency has led to the declining competitiveness of these enterprises, which has aroused the vigilance of the Brazil government.

As early as the former president Lula was in power, he vowed to fight against the damage caused by the excessive appreciation of the currency to the domestic economy. But over the past few years, the president of Brazil has changed to Rousseff, and the pace of Brazil's currency appreciation has not stopped.

Brazil finance minister Mantega recently suggested that the currency Real's value is strong, indicating that Brazil's economic energy is stronger, to a certain extent, the rising value is inevitable.

This is quite different from what he claimed to do at all times to prevent Real from appreciating a few months ago.

Economists questioned that Brazil might not be able to prevent Real from climbing further and had to turn to a trade protection policy.

Links

Carnival costumes 80% "made in China"

Officials of the Embassy in Brazil said that the tariff policy would have a dialogue with the Chinese side.

In recent years, trade between China and Brazil has developed rapidly.

In 2009, China surpassed the United States and became Brazil's largest trading partner.

Brazil mainly exports iron ore and soybeans to China, and the "made in China" of cheap and fine quality is indeed competitive in Brazil.

Chinese goods are cheap and fine.

Chen Genqi, a Chinese in Brazil, worked there for many years, and often contacted two enterprises.

He said: "take St Paul as an example. Recently, there are many offices of Chinese companies. There are large state-owned enterprises and private enterprises. There are some names that I have never heard of, but they all have to open up the Brazil market."

Chen Genqi said that because China's exports to Brazil are mainly industrial products, the impact on local industrial products is not small.

"For example, clothing and electrical appliances are selling very well in Brazil.

My friend in Brazil likes to use it. It's cheap and inexpensive. In fact, many things are exported to the locality, and it's not too expensive compared with the price in China. "

In March, Jonathan Schmidt, President of Brazil textile import chamber of Commerce, revealed that 80% of the products in the carnival show were from China.

"15 years ago, they were completely different. They were all made in Brazil."

Final tariff measures are not yet determined.

Regarding the Brazil's trade protection measures, Wu Hongying, a Latin American expert at the China Institute of modern international relations, bluntly said that this move will affect trade relations between the two countries.

In response to the concerns of the Chinese side, Gerrish Tano, the official in charge of economic affairs of the Brazil Embassy in China, told reporters that at present, in terms of anti-dumping and countervailing duty policies, Brazil's business department has a mechanism of dialogue procedure. The Brazil government will eventually implement any new tariff policy.

This dialogue will also start with Chinese authorities.

Griess also said that although the Brazil Foreign Trade Commission has made new initiatives, the implementation of these measures must be approved by the legislature.

This policy is also in the public consultation stage.

Before becoming a Brazil law, all kinds of feedback and voices from China will be informed by Brazil legislators before deciding on the final version of the measures.

Wu Hongying believes that trade between China and Pakistan is not only about primary products such as clothing, shoes and caps, but also with the cooperation of advanced products such as large aircraft and high technology.

"With the close economic relations between the two countries, trade friction is a normal phenomenon, mainly depends on how the two sides solve this problem."