Paraguay cautious of Argentina's announcement

Local producers are expectant and cautious about the release of obstacles for the entry of imports announced by the Argentine government.

The new Minister of Production of Argentina, Francisco Cabrera, said that the DJAI (Advanced Affidavits for Import) would be eliminated before the end of this year.

Cabrera also said that, even though there would be no restrictions starting January 1, 2016, they would establish 18,000 automatic or released license positions of the existing 19,000.

The remaining 1,000 will remain non-automatic, in order to continue having a managed trade to protect sensitive sectors, which could include an Integrated Monitoring System on Imports (SIMI).

Regarding this situation, exporters of fruits like banana and pineapple are fearful as they still don't know if the category would benefit from the licenses, if they will continue to have restrictions or if they shall be released, said the vice president of the Chamber of Banana and Pineapple Exporters, Hugo Franco.

The potential drawback is that, if the sector is released, the Argentine government could grant these licenses to certain buyers, who would become intermediators, which would ultimately increase the price of the products to the final customers.

Regarding shipment volumes during 2015, Franco said they had shipped about 1 million boxes of bananas, which would correspond to approximately $ 6 million dollars.

In turn, Santiago Colombino, a member of the Industrial Association of Paraguayan Tailors (AICP), said they still ignored what tools the new Argentine government would use to comply with foreign trade financial requirements.

He said there was going to be a lifting of restrictions but that they wondered how importer's dollars would inflow into the country and stated that they feared that their sector would be placed within the non-automatic licensing system under control.


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