Argentine Economy minister Axel Kicillof left Buenos Aires on Thursday for Brazil, where he will meet with fellow ministers from the country to discuss the current situation of bilateral rade and the automotive industry.
Falling trade in automobiles, which prompted Brazil and Argentina to sign a new commercial pact in June, will also be discussed between Kicillof and his Brazilian counterpart.
The drop in new car sales in the internal market, as well as the contraction of export sales, have affected vehicles manufacturers and sellers located in Argentina. Union estimates claim that up to 170,000 workers have been affected by the decreasing activity in the industry.
Lower demand from Brazil, which purchases around 90% of Argentine vehicle exports, has also hit the industry hard. In July the sector sent 24,085 units abroad to various markets, 38.7% lower than the 39,289 exported during the same month a year ago.
Argentina besides the manufacturing recession also faces the ongoing legal dispute with the holdouts or 'vulture funds' in a New York court which any moment can declare the country in 'contempt of court', while credit rating agencies have stated that Argentina for failing to pay bondholders coupon is in 'selective default'.
In Brazil, president Dilma Rousseff is running for re-election but the emerging Marina Silva is spoiling a bid that only a few weeks ago seemed assured, while the economy's growth continues to erode.
Fonte: http://brazilbusiness.einnews.com/article/220980187/TirOLkmOPwCZdXgO
