Sao Paulo, Brazil, 10 Feb – Brazil and China have reached an agreement to set limits on imports of Chinese textiles by Brazilian companies, similar to recent agreements signed with the United States and the European Union (UE), officials said Thursday.
The agreement was made by representatives of the two governments, during a meeting in Beijing, Brazil’s Ministry of Development said in a press statement.
The Brazilian delegation, which is currently in China to negotiate the agreement, is headed by the Executive secretary of the Development Ministry, Ivan Ramalho.
Restricting imports of Chinese textiles is one of the measures requested by Brazilian businesspeople in the sector who are worried about the success of products imported from China.
Last year, Brazilian imports of Chinese textiles increased 43 percent to US$539 million, against 2004 figures.
In the same period, total trade between Brazil and China increased 33 percent to US$12.18 billion, against 2004, with Brazil exporting US$1.48 billion than it imported.
Brazilian exports to China in 2005 totaled US$6.83 billion, a year on year increase of 25.62 percent.
Chinese exports to Brazil, in their turn, increased 44.3 percent between 2004 and 2005 to US$5.35 billion.
The textile agreement will prevent Brazil from setting up a formal challenge to China in the World Trade Organization (WTO).
The agreement sets percentages for increases of Chinese exports to Brazil in eight textile product categories over the next three years. (macauhub)