The case of Chinese textiles

29/09/2005 0 By Rodrigo Cintra

The invasion of Chinese products on the world market has harmed several countries, que agora ameaçam impor barreiras protecionistas caso o volume de exportações não se modifique. This is the case in Brazil, que deve regulamentar essa semana a imposição de salvaguardas para os produtos chineses que ameaçam a indústria nacional.

Em reunião entre os membros da Camex e Lula no mês passado, it was decided that the president would sign two decrees, regulating safeguards for products in general (lasting up to 2013) and another exclusive for textiles (lasting up to 2008).
The possible impacts of this litigation can be more serious than a simple commercial battle. The threat of imposing barriers does not come only from Brazil, also being seen in the USA and Europe. A China, in its turn, counters with the hardening of its position for the liberalization of agricultural products, mainly in multilateral trade forums, como na OMC.
Caso a China confirme esse posicionamento, the G-20 negotiations will be very compromised. To Brazil, block leader, this retaliation would weaken all the diplomatic effort that has been applied successfully in the Doha Round.
However, the most sensitive point of trade relations between China and Brazil is in the supply of soybeans, hoje a principal commodity de exportação do agronegócio brasileiro. The relationship of dependence between the two countries with regard to the purchase and sale of soybeans allows China to have in its imports a bargaining chip for trade negotiations., economic and political. Of the total volume of soybeans exported by Brazil, 30 por cento têm a China como destino.
It is important to consider the possible impacts on soybean that will result from the imposition of safeguards on imports of Chinese products, especially textiles. A importância desta commodity para a balança comercial brasileira impede que a sua comercialização seja colocada em risco, or traded as a bargaining chip; the maintenance of the current economic policy also depends on the permanence or growth of grain exports.
The decrease in shipments of Brazilian soy to China, fruit of American and Argentine super-harvests, may be aggravated by the imposition of safeguards. The large market offer will enable China to negotiate in a favorable position with Brazil, tanto em aspectos comerciais quanto políticos. It is enough to know which country the country is most willing to give in to..
The imposition of the barrier will be cautious. Brazil seeks to signal to China that safeguarding will only be adopted as a last resort and after negotiations. With this, the government seeks to calm the sectors of the economy affected by Chinese exports., and those who may be affected by possible country retaliation, the maximum example of soy.
* RODRIGO CINTRA é diretor
* MARIANA RICCI é consultora da Focus R. I. – advisory & Consulting International Relations


Originally published in:

Diário de Cuiabá

Edição nº 11248 23/06/2005