Puerto Iguazú, Argentina, 7/8/2004 (Agência Brasil - ABr) - Brazil will take advantage of the 26th Mercosur Summit which is now underway to attempt to resolve the impasse created by Argentina when that country decided to impose restrictions on imports of Brazilian home appliances. Argentina has announced limits on the importation of "white line" goods, and a surtax of 21% on TV sets produced in the Manaus zona franca. Minister of Development, Industry and Foreign Trade, Luiz Fernando Furlan, says he will meet with the Argentine minister of Economy, Roberto Lavagna, to discuss the matter.

Meanwhile, a meeting has been scheduled for next Wednesday, in Buenos Aires, which will bring together government authorities and representatives of the business sector for further discussions.

In the first half of this year Brazilian imports to Argentina rose over 75%, compared to last year. Exports of washing machines climbed 176%, refrigerators 126% and stoves 121%. Buenos Aires says it fears an "invasion" of Brazilian goods and sees a threat to its economy in the possibility. The Argentine Industrial Union (UIA) has strongly supported the government's decision to impose restrictions on Brazilian imports.

The dispute occurs as Brazil is set to take over the presidency of Mercosur (the presidency rotates every six months; Brazil substitutes Argentina).

Brazil's Foreign Minister, Celso Amorim, says he is confident a solution will be found. "We have managed to resolve problems before," he declared.

Translator: Allen Bennett