Brazil and Argentina Close Trade Facilitation Agreements
The governments of Brazil and Argentina signed, on October 3, 2016, two agreements in order to facilitate trade between the two countries. The agreements were signed at the end Brazilian Minister of Industry, Services and Foreign Trade, Mr. Marcos Pereira’s official visit to Buenos Aires.
The first agreement aims to benefit small and medium-sized enterprises, which are seen as crucial for economic recovery of both countries, by creating a Digital Certificate of Origin. It currently takes Brazilian importers and exporters one to three days to obtain a certificate of origin, which is one of the required steps in completing a trade transaction. The agreement will enable the certificate to be issued online in only 30 minutes.
The second agreement establishes a commercial dialogue between Brazilian Ministry of Industry, Services and Foreign Trade and Argentinian Ministry of Production, with the purpose of fostering activities that strengthen the relations between the two countries. The aim is to integrate the two systems to facilitate bilateral trade, promote investments and remove trade barriers.
The trade between Brazil and Argentina seems to be finally back on track, as both countries clearly demonstrate an understanding of the importance of promoting bilateral relations and enhancing international free trade. Brazil is the biggest economic partner of Argentina, while Argentina accounts for Brazil’s third largest export and import market. In 2015, trade between Brazil and Argentina totaled US$23 billion, with exports of US$12.8 billion and imports of US$10.2 billion, leading to a surplus for Brazil of US$2.5 billion. Despite the current recession and the MERCOSUR crisis, the recently signed agreements could greatly contribute to economic recovery of both countries.