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Productive sector evaluates negociations on Korea trade agreement and Mercosur

Posted by Marina

The Confederation of Agriculture and Livestock of Brazil (CNA) participated on Thursday (10), the seminar on "Trade Agreement Korea-Mercosur", promoted by the General Consulate of the Republic of Korea in São Paulo. The event addressed the negotiations between the bloc and the Asian country from the economic point of view, political, legal, technological and geopolitical.

The agreement under negotiation provides for free trade of Korean products imported from and exported to Mercosur. The Commercial Intelligence Coordinator of the Superintendence of International Relations CNA, Sueme Mori Andrade, participated in the panel "The political dimension and the agricultural agreement." She presented data the trade balance between the two countries and said that Korea is an important partner for Brazil. From January to August this year, the total exports from Brazil to Korea, 59% were agricultural products.

"We are in 4th place among suppliers of food to Korea. It's a good place but could be much better, because Brazil does not have the privileges and preferences to other partners who already have signed an agreement. We do not compete on an equal footing. "

In evaluating Sueme, broad agreement with China would put Brazil in a close race condition of others and, in addition to tariff issues, which is a barrier for the sector due to high rates, it is also necessary to consider the health issues and plant health and the basket of agricultural products included in the agreement.

"Brazil is an agro exporting country. So you can not sit at a negotiating table without discussing the scope and ambition of this agreement on points such as sanitary and phytosanitary issues, for example. The CNA supports the agreement provided that addresses these issues and that they ensure real and concrete conditions of access for agricultural products to the Korean market. "

Sueme spoke of a study that the CNA is developing on the possible impacts of the agreement for the agricultural sector and stressed that the Confederation is in dialogue with the Ministries of Agriculture and Foreign Affairs, which are the organs that lead the negotiations of the trade agreement.

In the panel "Economic Dimension", Professor of International Economics and Economics of the Chinese ibmec (IBMEC), Roberto Dumas Damas, he highlighted the agro contribution to the Brazilian competitiveness in the export of agricultural commodities.

Damas defended the withdrawal of Brazilian industries in the "comfort zone", to modernize them in order and increase the country's competitiveness. The teacher also said that the free trade agreement with Korea will open up the market for the agro do not be totally dependent on China and could diversify the export basket and bring technology to Brazil.

On "Dimension Policy / Agreement Industrial", the director of the Department of International Relations and Foreign Trade Federation of São Paulo (Fiesp), Thomaz Zanotto, defended less taxes for industrial production and stated that the partnership with Korea can happen with technology transfer, trade facilitation and technical and scientific knowledge.

In the panel "Legal Dimension", the International Law professor at USP, Gustavo Monaco highlighted the importance of understanding and discuss the terms of the agreement, including with civil society. He stressed that the treaty is legally possible. However, he stressed that there is no requirement to disclose the terms before signing between the parties.

The consultant and professor of law, Amenio dos Santos, discussed the current situation of Mercosur. For him, the agreement is a condition that must be seen strategically the importance. However, one should speed up negotiations for bilateral agreements.

"I defend to the agreement as umbrella, continue negotiations, to consider all aspects and peculiarities, but to a bilateral agreement that may be much more advantageous, fast, efficient and effective both for Korea and for Brazil."

The Consul General of Korea, Kim Hak You, said the seminar's discussions will contribute to the understanding of the impacts of the agreement in Brazil and Korea's economy. "The goal of all of us is to create a favorable environment to accelerate negotiations between the parties." Kim stressed that a free trade agreement will be positive for the economic recovery of the countries involved in the POST-COVID.