Puerto Iguazú (Argentina), July 9, 2004 (Agência Brasil) - Brazil hopes to resolve next week the diplomatic flap caused by Argentina's decision to impose restrictions on imports of Brazilian home appliances, on the eve of the Mercosur summit meeting. According to the Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, the Argentinean restrictions will only take effect after they are regulated, which has still not occurred.

Since representatives of the Brazilian and Argentinean governments and appliance manufacturers will meet next week in Buenos Aires to discuss this matter, the Minister said that he is optimistic and hopes the Argentineans refrain from applying the restrictions. "After this meeting, the Argentinean government will evaluate whether regulation will be necessary," Furlan pointed out.

According to the Minister, the President of Argentina, Néstor Kirchner, expressed willingness to negotiate with the Brazilian government over sticking points in trade between the two countries. In two weeks a new meeting between Brazilians and Argentineans will be scheduled for each side to expound its desires in the trade sphere, so that the two can seek common ground. "The Argentinean government should present Brazil with the aspects it considers relevant to its development, and, from there, we shall try to discover points we have in common," Furlan said.

According to the Minister, the idea is to avoid trade disputes and search for amicable solutions to impasses. "We have to take a global view of the Mercosur, rather than remain sparring over temporary issues," Furlan argued. In his opinion, Argentina felt that its industrial park needs refurbishing, since the country is growing, and the same thing is happening in Brazil - that is why the neighboring country decided to limit imports from Brazil.

The Minister of Finance, Antônio Palocci endorsed Furlan's words. For Palocci, when the economy is growing, productive activities are reactivated, and it is natural for trade disputes to occur. "It is important for a dialogue to exist between the governments. These controversies do not impede composing a ample negotiation," he said. Furlan emphasized that the Brazilian government is not treating the trade dispute with Argentina with "emotionality." "Emotional discussion is always very impassioned," he said.

Palocci and Furlan spent a good part of the morning, yesterday (8), presenting figures on Brazilian home appliance exports to Argentina in recent months to the Argentinean Minister of the Economy, Roberto Lavagna. According to Furlan, these sales have been perfectly normal.

As for the threat made on Wednesday (7) by the Argentinean President, Kirchener, to impose restrictions on other Brazilian products, especially in the textile sector, Palocci had recourse to the Old Testament to define his point of view. "Each day with its own tribulation," he commented ironically. In Palocci's opinion, it would be premature to discuss a question that hasn't even arisen yet.

For his part, Minister Furlan said it would be a "bucket of cold water," if the Argentineans decided to restrict imports of Brazilian textile goods. "Some months ago the Brazilian textile sector was the subject of an extensive process of negotiations. If the two countries fail to honor the commitments assumed in the negotiations, it would represent a bucket of cold water for us Brazilians," he admitted.

Reporter: Gabriela Guerreiro
Translator: David Silberstein