Brazil agreed to limit exports of stoves to Argentina and is negotiating quotas on refrigerators and washing machines, in a bid to resolve a dispute with the Argentine government, the Development and Trade Ministry said.
Brazil agreed to limit stove shipments to Argentina to 90,000 this year and has 60 days to negotiate terms for 2004 exports of refrigerators, after accepting a limit of 36,300 units next month and September, said Deputy Trade Minister Marcio Fortes in an e-mailed statement. More than 50,000 stoves from Brazil already have been sold in Argentina this year, according to the O Globo newspaper, citing home appliance executives.
The countries have yet to reach an agreement on washing machines. Brazilian companies have 50 percent of the market for home appliances in Argentina, according to Electros, a Sao Paulo- based business panel that gathers Brazilian appliance makers.
Argentina this month restricted imports of home appliances from Brazil and set a 21-percent tariff on Brazilian televisions. The move raised concern among analysts such as Gustavo Rangel of Barclays Capital Inc. that the dispute may strain relations between the two countries and divide the Mercosur bloc, South America's largest trade zone. 16 (Bloomberg)
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