CNI says China is already raising trade barriers against Brazil to favor the United States.
According to the latest update published on the confederation's website, 17 new barriers were found between March and May alone. Of these, 10 were imposed by China.
Sputnik - A survey conducted by the National Confederation of Industry (CNI) identified that trade barriers against Brazilian products in international trade reach 70.
According to the latest update published on the confederation's website, 17 new barriers were found between March and May alone. Of these, 10 were imposed by China. The others were created by Mexico, Saudi Arabia, Argentina, India, and the European Union.
According to Johnny Mendes, professor of Economics and Finance at FAAP (Fundação Armando Álvares Penteado) and specialist in Foreign Trade, Brazil has historically prioritized trade agreements with Latin America, but these agreements have ultimately proven disadvantageous.
"Right now, what should motivate the growth of trade barriers to Brazilian products is the consequence of the relationships that Brazil has built over the years. The country invests, has invested, and continues to invest in trade agreements in Latin America or South America, but these agreements do not tend to have good advantages for the country," he told Sputnik Brazil.
Mendes attributes the growth of barriers imposed by China, with whom Brazil maintains intense trade relations, to the trade war between Beijing and Washington. According to the economist, to meet US demands, the Chinese have been leaving some Brazilian products aside.
"China has really dedicated itself to meeting these metrics that the Americans want so that they can make agreements that favor both countries. In this way, they tend to prioritize products that could be supplied by Brazil over those supplied by the United States," he explained.
Mendes says that Brazil needs to build solid relationships so that, even in times of economic crisis such as that caused by the COVID-19 pandemic, the country can maintain trade partnerships.
"[Brazil] should put in a little more effort into long-term relationships that are beneficial, including during crisis situations like the one we are going through," he argued.
To try to overcome some of these barriers, Johnny Mendes suggests that Brazil conduct negotiations bilaterally.
"Brazil can intervene in each country and try to understand the reason for the barrier. In some cases, it relates to subsidies, in other cases it relates to increased taxes, and from there try to connect the dots, select a convention that the countries had already established, and try to negotiate with these countries bilaterally," he said.
Breaking down barriers should be a public-private agenda, argues CNI.
In its survey, the National Confederation of Industry indicated that of the 70 barriers identified, the Brazilian government managed to resolve only seven.
According to Constanza Negri Biasutti, Trade Policy Manager at the National Confederation of Industry, the increase in trade barriers is due to the many regulations required based on consumer protection.
"Nowadays, there are many legitimate demands for consumer and health protection that cause many internal regulations within the country, so issues not only at the border, but also within countries, end up creating unnecessary obstacles to trade and turning into barriers," he told Sputnik Brazil.
But, beyond health issues, Biasutti believes that many times the barriers are imposed by countries due to protectionist measures.
"There is a tendency in some countries to take protectionist measures and create barriers to market access in different sectors where they have defensive interests," he said.
The CNI's Trade Policy Manager argues that reducing barriers is something that needs to be addressed by both the public and private sectors.
"It's important to remember that this is a public-private agenda. The private sector needs to be aware, on the one hand, so that it can identify and point out to the government what these barriers are, so that the government can have well-founded input to advocate with third countries for the removal of these barriers," he added.