Entrepreneurs bet on an agreement with the government of the United States around the cotton dispute at the World Trade Organization (WTO), which enabled Brazil to retaliate against imports of items in U.S. $ 829 million. According to representatives of the exporters, fearing that restrictions should extend to services and most importantly, intellectual property, the U.S. should be forced to negotiate compensation for the entry of some Brazilian products in your market. The biggest fear is breaking patent sensitive sectors such as pharmaceuticals and computer programs, which have great power to pressure the White House and Congress.
To suspend the entry into force of retaliation for 102 products sold in Brazil, announced yesterday, the authorities U.S. trade have 28 days to submit a proposal that appeals to the export sector. "We have reports that a compensation package is on its way to avoid a trade war," said the director of Foreign Affairs and Trade of the Federation of Industries of Sao Paulo (Fiesp), Roberto Giannetti da Fonseca.
The list released by the Chamber of Commerce (Camex) affects U.S. exports worth U.S. $ 591 million. To Giannetti, if measures are implemented, U.S. exports to Brazil should be reduced in value, being replaced by domestic purchases or other countries. Among the products affected by the increase in import tariffs, are wheat, cotton, automobiles, motorcycles, cellular phones, razors, and fruit juices. The WTO also authorized Brazil to retaliate services and intellectual property at U.S. $ 238 million.
"It's the first time this has happened, opening up a dangerous precedent not only for the United States, which are addictive in the defense of industrial patents, but for other countries that invest in technology," says Giannetti. For him, the internal pressure of the pharmaceutical industry and software must force the government of President Barack Obama to submit a proposal for compensation. The director points out some Fiesp products natural candidates for a possible reduction of tariffs or quotas free of tax: ethanol, fresh beef and orange juice. The three are constrained pricing or plant to enter the U.S. market.
Search
The vice-president of the Association of Foreign Trade of Brazil (AEB), José Augusto de Castro, also believes the presentation of a proposal for negotiation. "If the retaliation only stayed in what was announced to date, they do not even mexeriam. No company will break because of it. But intellectual property is a very sensitive area. Breaks patents may discourage research to develop new medicines" says. According to him, despite the small value, the political impact of the measure would be great. The Brazilian government has issued a provisional measure that authorizes such retaliation "crusade" and a list of items will be placed on public consultation on 23. Castro does, however, a warning. If they decide to take the dispute further, the U.S. can remove Brazil from the Generalized System of Preferences, which grants unilaterally lower tariffs for goods from emerging countries.
The Secretary of Commerce, Gary Locke, was yesterday in Brasilia, but did not bring any proposal. "It was not a negotiation session. We are waiting for a proposal that so far has not happened," said Development Minister Miguel Jorge, after meeting with Locke.
Intellectual property is a very sensitive area. Breaches of patents may discourage the search "
José Augusto de Castro, vice president of AEB
Escalation of the conflict
U.S. Senator Mike Johanns, former secretary of Agriculture, yesterday warned those who want to promote an escalating trade dispute with the Brazilian government on cotton subsidies. He said that Brazil will add "many friends" around the world if Washington between this dispute. "If surprised with international support with regard to Brazil," said Republican Senator, former Secretary of Agriculture. "Get ready, Brazil will choose the most sensitive areas as they can in retaliation," said Johanns. Bilateral trade between the United States and Brazil reached about $ 46.3 billion in 2009.
Also yesterday, business groups in the United States criticized the government of Barack Obama for failing to resolve trade disputes that lead Brazil to impose trade sanctions on U.S. products. "For the sake of workers and American farmers, we can not allow an emerging pattern in which the inaction in Washington about the trade put jobs at risk," said John Murphy, vice president of international policy at the Chamber of Commerce USA. After disclosure of the list of U.S. products whose import tariffs are high, and one of which is wheat grown in the U.S., that Canadian grain producers said they expected gains in exports because of the dispute.
Source:www.noticiasagricolas.com.br
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