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Author Topic: Brazil Indus Seeks Extension Of Trade Preferences In Talks With US  (Read 647 times)

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Offline Sashia

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Brazil Indus Seeks Extension Of Trade Preferences In Talks With US
« on: September 20, 2009, 05:22:10 PM »
I tried to find the old post pertaining to the trade preferences, but I couldn't find it. Maybe one of the adm's could post this there?
BRASILIA -(Dow Jones)- Faced with a weakened foreign trade balance in a still tough global economic environment, Brazilian industry pushed for an extension of U.S. trade preferences for Brazil in meetings Thursday with U.S. Trade Representative Ron Kirk.
Officials from Brazil's National Confederation of Industries, or CNI, following a meeting with Kirk, said they saw good chances for an extension of the preferences.
"We sought to impress on him our interest in maintaining the preferences because we don't have a free trade accord with the U.S., and it's fair that they are maintained." said CNI President Armando Monteiro Neto. While recognizing that the measures are directed toward countries with weaker global trade positions, Monteiro Neto also noted that U.S. importers of Brazilian goods are favored by the scheme.
The allowances, known as the U.S. Generalized System of Preferences, are currently under a two-year review in the U.S. Congress. They currently favor about 4,000 Brazilian goods, or about 15% of Brazil`s exports to the U.S.
CNI officials noted the U.S. congress was currently facing a backlog of trade related matters and may not get around to reviewing the Brazilian request in a timely manner. "A delay in the review, however, would actually favor an automatic extension of the preferences," noted CNI executive Director Jose Augusto Fernandes.
The bid to renew the preferences comes shortly after the Brazil won an $800 million ruling against the U.S. at the World Trade Organization condemning government subsidies to the U.S. cotton sector.
With the decision, Brazil won the right to retaliate across different sectors, including intellectual property and other commerce.
CNIOfficials said Kirk did not specifically address the WTO decision and would likely leave the matter for other meetings with Brazilian government officials later in the day.
Also on the bill for discussions Thursday were accords on investment protection and promotion, bilateral tax accords and cooperation on biofuels, including ethanol.
While no advance has been made on Brazilian efforts to reduce U.S. tariffs on ethanol imports, CNI officials said Kirk gave hope that the matter could come under review in the future as the two countries explore avenues for cooperation in the area of renewable energy.
Following his meeting with Brazilian industry officials, Kirk is scheduled to meet with government trade and diplomatic authorities.
Among items for discussion at those meetings include a $36 billion Brazilian Defense Ministry bid for purchase of fighter jets. U.S.'s Boeing Corp., France's Dassault, and Sweden's Gripen have been named asfinalists in the bidding by the Brazilian government.
- By Gerald Jeffris, Dow Jones Newswires; (5561) 9162-7863, gerald.jeffris@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ydYPL%2BOHsHRxG95jwKtoUQ%3D%3D. You can use this link on the day this article is published and the following day
WTO Considers Extension of Trade Preferences for Poorest Countries
The World Trade Organization (WTO) Council for Trade in Goods voted earlier this week to extend by 10 years the waiver which allows developing countries such as India and Brazil to provide preferential tariff treatment to products from the least developed countries without being required to extend the same treatment to goods from other WTO members. The existing waiver was set to expire on June 30, 2009. The decision of the Council for Trade in Goods now goes to the WTO General Council for adoption.