Brazilian Textile and Apparel Industry Association (ABIT) announced that in Beijing, the Brazilian government signed an agreement on the voluntary restriction of Chinese imports into Brazil. The measure satisfies the Brazilian apparel and textile sector’s main demands.

The sector has been working for some time in the attempt to reduce predatorily competition between the two countries. Representatives from ABIT’s International Area participated directly in the negotiations with China.

ABIT mulls over the agreement signed in Beijing to be positive. The agreement concerns the voluntary restriction of Chinese textile imports to Brazil, thus satisfying the main demands from the country’s apparel and textile sector.

'The Agreement was not ideal, but we consider it positive since it satisfied eight product categories that suffered a lot from Chinese imports last year. Another important point is that the text does not eliminate the possibility to use safeguards, at any moment, for all other categories not attended to in this Agreement.’

“It is necessary to underscore the competent work by the team of technicians headed up by Secretary Ivan Ramalho, from the Ministry of Development, Industry and Foreign Trade,’ declares Fernando Pimentel, ABIT Director-Superintendent.”

The eight categories involved in the Agreement, in effect until 2008, encompass 70 products inserted in: silk fabrics, texturized polyester filaments, synthetic fabrics, velvet, knit shirts, sweaters, jackets and embroideries.

According to Pimentel, just as important as the celebration of the Agreement is its implementation, to avoid any time gap and consequent shipment races. The Ministers from both countries shall sign the final text of the Agreement in 30 days. 'It is necessary to make it very clear that this Agreement is temporary, running until 2008, and that during this period we must accelerate changes in industrial and tax policy. Our companies are competitive, but we must lower interest rates, reduce the tax burden, invest in infrastructure, among other obstacles that rob our competitiveness,' concludes Pimentel.

Brazilian Textile and Apparel Industry Association

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