Brussels, 07/05/2012 (Agence Europe) - In the wake of the expropriations of Spanish industrial groups in Argentina and Bolivia, EU Trade Commissioner Karel De Gucht has warned Brazil against the growing temptation of protectionism in South America.
Brazil, the region's largest economy, “has so much to lose” if it goes down the protectionist route taken by Argentina and Bolivia, De Gucht suggested at an EU-Brazil Conference in Brussels, on Monday 7 May. The expropriation of foreign companies in Argentina and Bolivia, the trade restrictive policy being conducted by Argentina through its import licensing regime are a “problem” for these two countries which “will find it harder to secure the international investment they need”, he said, deploring the damages suffered by the European companies. “They are also a problem for Brazil - because it has so much to lose from a trend towards protectionism in the region. It is worth remembering that 20% of Brazil's exports are to other Latin American countries. An integrated Latin America would allow Brazil to expand that trade. And it would also create continent-wide economies of scale, making it easier to compete on global markets”, he stated. Brazil, which, he said, should be “proud of the enormous progress it has made in recent years”, “cannot sit still if it wishes to move to the next stage of its development”, he argued. (EH/transl.rt)