Camex should enjoy the end of the maritime transport agreement between Brazil and Chile, reports the CNI

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Brasília – The government has the opportunity to show the private sector that the speech to the expansion of foreign trade is in tune with his actions at the meeting of the Foreign Trade Chamber (Camex) today, Wednesday (28). This is the expectation of the Industrial Development Director of the National Industry Confederation (CNI), Carlos Eduardo Abijaodi.

Camex will enjoy the end of the maritime transport agreement between Brazil and Chile, which created a duopoly on the route Brazil-Chile-Brazil, which operate only two companies with eight ships. In more distant routes, but no exclusivity agreement, such as Brazil, Ecuador and Brazil-Peru, there are at least 30 ships with costs that are up to 40% lower.

The National Confederation of Industry (CNI) believes that the Camex should put an end to this agreement that ensures market reserve and report the Treaty of Maritime Transport. The agreement was signed in 1974, when there was the need to stimulate the nascent industry owners. But 41 years later, two multinationals operating on the route. Currently, the total of Brazilian goods exported to Chile, 54.44% use maritime shipping. And 69.19% of imports of Chilean products arrive in Brazil by the sea.

“The agreement created a privilege and an exporter income transfer mechanism and the Brazilian importer for the carrier. The government has a chance to end this agreement which has several negative effects on foreign trade. Exporters suffer from high freight costs, lack of ships and lack of supply at appropriate times. Termination of the agreement is a step in favor of competitiveness and competition, “says the director.

CNI survey, with 847 exporting companies, pointed out that the cost of transport is the main challenge to the competitiveness of Brazilian exports. The high price of shipping explains in part why Brazil is one of the ten largest global economies, but participate in only 1.2% of the global volume of exports of goods.

The agreement provides that only Brazilian or Chilean flag vessels may operate in Brazil-Chile-Brazil route and harms more than 3.6 thousand Brazilian exporters and importers of nearly 1200 major sectors of the economy such as automotive, machinery and equipment, ceramics, pulp and paper, metals, cosmetics and hygiene and agribusiness.

Chile is an important market for the Brazilian productive sector. The country is the second largest investment destination of national industries, the seventh largest export destination and 13th largest supplier of inputs. However, trade between the two countries have fallen.

Source: CNI
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