Brasilia, Brazil, 23 Aug – An agreement between Brazilian and Chinese toy manufacturers is expected to encourage new agreements to be signed in order to substitute protectionist and antidumping measures, official said in Brasilia Tuesday.
The agreement, signed on August 17 in Beijing, includes maintaining China’s involvement in the Brazilian market using 2005 as a base year, in which around US$90 million Chinese toys entered the Brazilian market.
Brazilian Executive Secretary of the Ministry of Development, Industry and Commerce, Ivan Ramalho, said that the dynamism of this type of agreement is its most important characteristic as it would be in force within a maximum of 30 days, while protectionism is an official process that follows legislation, and is thus a lengthier process.
The agreement was signed by Brazilian toy manufacturing association, Abrinq, the China Toy Association and the Chinese Chamber of Toy Exporters, with governments merely directing discussions between private companies.
Every six months the development of the market will be analyzed by the Controversy Solution Group, recently created by Brazil and China.
The group will also be responsible for defining the amounts to be exported every year by China.
The agreement also includes provision for Chinese toys to be certified according to Brazilian quality standards in order to prevent very cheap toys lacking in quality from entering Brazil and thus from being unfair competition for Brazilian manufacturers.
This was the second agreement of its kind to be signed between China and Brazil. In February this year the two countries signed an agreement to restrict textile imports, which was valid until 2008. (macauhub)