Brazil’s economy ministers Paulo Guedes and Argentina’s Nicolas Dujovne met today in Rio de Janeiro to close bilateral issues and thus pave the way for the conclusion of a Mercosur agreement with the European Union. After the meeting, Guedes said he hoped the two economic blocs could reach agreement by the end of this year.
“We have a common agenda of bilateral negotiations. We hope that in the next 30 days, we will reach an agreement on these bilateral issues. This greatly facilitates our joint negotiations with the European Union, “said the Brazilian minister. “This will allow us to reach an agreement with the Europeans that we have been delayed for decades.”
Among the negotiated issues within Mercosur are the expansion of the coverage and reduction of the common external tariff (TEC). “The tariff can not be a protectionist wall to isolate Mercosur from the world economy. It needs to be an integration vehicle, “said Brazilian Foreign Trade Secretary Marcos Troyjo.
In addition to their understanding of trade issues, the two countries also seek partnerships in the area of infrastructure, according to Guedes. The Brazilian minister also said that Brazil is willing to support all the Argentine efforts to stabilize the neighboring country’s economy. “Minister Nicolas and President Macri [of Argentina] have our full support,” Guedes said.
Petrobras
Before the meeting with Dujovne, the Brazilian minister said that the government does not think about privatizing Petrobras. “There is no privatization now from Petrobras. This is not what the president said. He said he was considering for the first time,” he said.
According to the minister, the government wants to break what it calls a double monopoly, in refining, in gas production and in state-owned distributors.
“Petrobras is a large Brazilian company. It has been occupied by people who have distorted their natural functions. What we are going to do is return Petrobras to its color activity, which is precisely the exploitation of oil. The rest, including the monopolies, we want to take away. ”
Guedes said he had been talking to governors about what he calls a cheap energy shock. This shock has a maximum deadline of 60 days to be implemented, through regulatory measures. The minister revealed that the governors of Rio de Janeiro and Espírito Santo had already joined the idea and that, for the moment. He has talks with the governors of Minas Gerais and São Paulo.
“The idea that you bring you and gas to Brazilian families for half the price reindustrializes gas on cheap energy is something extremely appealing to all of us,” he said.
