Brazil industry not likely to call China market economy
Most Brazilian industries oppose the recognition of China as a market economy, José Augusto Fernandes, director for Policies and Strategies at the National Confederation of Industry (CNI), declared today (Jun. 16). “At the present moment, the biggest portion of Brazilian industry favors the non-recognition. Some sectors, however, do oppose it,” he stressed during a meeting of the International Chamber of Commerce.
Trains bought from China for the Rio de Janeiro subway system
China was admitted as a member of the World Trade Organization (WTO) in 2001. At the time, a deadline was set for the Asian country to adopt the international rules necessary for a nation to be recognized as a market economy. According to the WTO, each country member is to decide whether China will be treated as an open economy. The term ends in December, 2016.
“This is a topic on the agenda—not just Brazil's, but also that of a number of other countries. We had a meeting 15 days ago, in France, with business organizations from the G20, and this issue was also raised,” Fernandes added. In his view, Brazil should take into account the stance taken by other nations before taking its own. “The decision Brazil is about to make will not be isolated. Brazil is to observe what the other countries are choosing,” he noted.
Fernandes argues that China's progress in such areas as labor relations and environment, the government incentives aimed at some sectors of the economy are still a competitive advantage according to the standards of international commerce. “It's important to acknowledge that China has changed considerably in the last 20, 30 years. Salaries in the Shanghai region are really close their Brazilian counterparts. Major changes have taken place. The issue, which is closely related to anti-dumping—a crucial issue to deciding whether a nation should be deemed a market economy—bears no connection with labor laws or the subject of salary or environmental costs, but rather with the subsidies offered to companies by the government.”
China is Brazil's biggest trade partner. In 2015, Chinese companies sold Brazil as much as $35.6 billion in goods, whereas Brazilian businesses posted an income of $30.7 billion from their commerce with the Chinese.
Translated by Fabrício Ferreira
Fonte: Brazil industry not likely to call China market economy
