The Argentine Industrial Union (UIA) and the National Confederation of Industry (CNI) of Brazil signed this Monday (23.01.2023/XNUMX/XNUMX) a joint declaration suggesting priority actions to the respective governments to advance bilateral and regional economic and trade agendas.
The document, signed on behalf of the Brazil-Argentina Business Council (Cembrar), was delivered to Presidents Lula da Silva and Alberto Fernández at a meeting between businessmen and heads of state at the Casa Rosada.
There, industrialists from Brazil and Argentina called for deepening bilateral economic relations. The president of the UIA, Daniel Funes from Rioja, He said that "the idea of the document is to have an immediate and common action plan for the objectives that the productive economy can achieve for the development and social inclusion of our countries."
For his part, the president of the National Confederation of Industry (CNI), Robson Braga de Andrade, He added: “With appropriate policies and effective joint initiatives, we will have a more consistent and stable economic and regional integration, which will stimulate the lasting and sustainable growth of our countries. Brazil and Argentina need to further boost their industries and deepen bilateral relations and regional integration in MERCOSUR.”
Thus, Seven strategic actions proposals for sustainable growth are:
1. Generate a common strategy to promote productive investment based on stable economic growth.
To promote the integration of the productive structures of the two countries, an economic and institutional context is needed that enables investment. Thus, it is necessary to recreate the conditions to reverse this situation, defining a horizon of sustainable growth with active State policies in relation to the industrial and scientific-technological promotion that allow the expansion of bilateral and global exports, in addition to maintaining the balance in the external savings accounts of both countries. The expansion of the Local Currency System (SML) in bilateral trade can be a short-term tool to advance in this direction.
2. Promote investments to stimulate energy supply, infrastructure and connectivity between the two countries and in the region
The implementation of improvements in infrastructure and connectivity is essential, and industry plays a key role in carrying out works that enable energy development and the addition of local value. The measures promote a balanced integration of recently dynamic regional production chains, such as food, pharmaceuticals, automobiles, chemicals and petrochemicals, plastics, metallurgy, textiles, and drive demand from other sectors of the economy. It is also important to focus on the investments needed for greater integration of logistics and transport capacity to improve connectivity and the flow of exports, considering telecommunications and network connectivity to promote technological capabilities aimed at digitalization and productive and commercial efficiency. An example in this regard is the situation of the Uruguayana-Paso de Los Libres International Bridge, which connects Brazil and Argentina, where immediate efforts are required to define a solution.
3. Eliminate trade barriers and advance the implementation of cooperation and regulatory convergence initiatives
In addition to the commitments within Mercosur, there are several restrictive measures and licenses between both countries that not only harm bilateral trade and access to goods and inputs, but also make productive integration between Brazil and Argentina unviable. In the regulatory field, products and services face an ever-increasing range of regulations, where diversity is considered burdensome and unnecessary differences in regulation constitute an additional obstacle to long-term economic integration.
4. Deepening commitments to trade facilitation and de-bureaucratization
Simplification and reduction of bureaucracy in bilateral trade can be improved, considering that formal import and export procedures in Brazil and Argentina remain complex compared to international best practices. While both countries have multilateral and regional commitments in this area, the relevance of the economic relationship shows that strengthening this bilateral agenda would have even greater potential to achieve time and cost reductions and promote greater trade flows between the two economies.
Cembrar has made progress in identifying points for improvement in this area and understands that it is It is essential to conclude a Brazil-Argentina trade facilitation protocol which includes, among other topics, the full implementation of the one-stop shop foreign trade between the two countries, with guidelines for interoperability, the mutual recognition of the Programs of Economic Authorized Operator and greater cooperation between the customs, with a focus on coordinated border management.
5. Accelerate the process of external negotiations, in blocks, with strategic markets for the industry
International integration and the need to expand the coverage of trade agreements beyond Mercosur are common points between Brazil and Argentina, but it is important that the strategy be carried out jointly, within the regional bloc, prioritizing markets where there are benefits of expansion and diversification.
6. Promote cooperation towards a low-carbon economy, including issues such as energy transition, carbon market, circular economy and forest conservation.
The environmental agenda is gaining ground around the world and, in light of global commitments, new market access requirements are emerging. At Cembrar there is a strong commitment to sustainability and most companies are implementing voluntary commitments and improvements to reduce the environmental impact of their activities. Thus, there is room to accelerate the joint agenda between both nations, which advances in the implementation of norms and standards in a timely manner and with regional scope.
The commitment must be to competitively assess the advantages and opportunities in the energy transition, in order to balance the commitment with the objectives of productive development, social well-being and poverty reduction. In addition, it is important to address environmental issues without creating undue barriers to trade, so that global commitments regarding financing flows for these purposes are met.
7. Promote joint digitalization and Industry 4.0 programs
In recent years, technological changes have accelerated and industrial companies, especially small and medium-sized ones, face the challenge of accessing and implementing new technologies, mainly to identify their needs and move forward on the right path of digitalization and productivity improvement. For this reason, Cembrar works on cooperative actions to face the challenge, aware that the region already presents an imbalance compared to competing markets.
The central theme for the competitiveness of the countries must be part of the bilateral agenda, with joint programs that promote investment, research and development in the use of advanced digital technologies for production, with emphasis on the transition towards more sustainable productive activities. It is also necessary to include the development of value chains, with knowledge-based economies, with greater export potential.Joint Declaration of Cembrar)
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