Wednesday, 3 August 2011

Brazil moves to protect industries from foreign rivals.

3 August 2011

Dilma Rousseff unveils her 'Bigger Brazil plans for industry

Brazil's President Dilma Rousseff has unveiled plans to help her country be more competitive.

The measures include tax breaks for Brazilian-made products and anti-dumping measures on cheaper imports mostly from China.

Brazil's booming economy has pushed the value of its currency, the real, higher making its exports more expensive.

The president said it was "imperative" to protect Brazilian industry and jobs from unfair competition.

Brazil's manufacturing industry has been suffering because of a surge in foreign imports, mainly from China, and industrial production has been falling in recent months.

This has happened despite the fact that Brazil's economy is one of the world's fastest growing.

Brazil has accused the US and China of lowering the value of their currencies, driving up the real, which has gained 6% against the US dollar this year.

Called "Bigger Brazil" the long-awaited plans include tax breaks and export incentives for local producers, as well as tougher controls on the importation of foreign goods.

Speaking at the unveiling of the plans, Finance Minister Guido Mantega said Brazil was operating on "a predatory, competitive world stage" and promised rigorous regulation of imports.

Brazil's government believes that many countries try to bypass import controls by routing goods through a third country.

Brazil has already enacted a series of anti-dumping measures aimed at Chinese-made goods.

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