Brasilia, Brazil, 13 March – Exports of Chinese textile products to Brazil will be controlled from April 3, under the terms of an agreement signed this month by the Brazilian development, industry and foreign trade minister, Luiz Fernando Furlan and China’s trade minister, Bo Xilai, officials have said.
The agreement, which will be valid between 2006 and 2008, sets limits on the amount of textiles China exports to Brazil, including 70 different types of product, which currently make up 60 percent of Brazilian imports in the sector.
Between 2004 and 2005, exports of Chinese textiles to Brazil increased by 43 percent and totaled US$360 million a year.
In 2005, Chinese imports increased 44.27 percent and exports from Brazil to China rose 25.62 percent, leaving Brazil with a trade surplus of US$1.5 billion.
Other Brazilian industry sectors are preparing to request official support against what they are calling unfair competition from products arriving from China.
Although it prefers to negotiate, the Brazilian government has not ruled out the possibility of adopting measures to defend their market against China, if necessary. (macauhub)