The Association of Garlic Producers, Packers and Exporters alerted the provincial government over the crisis that the sector is facing because of the trade barriers and differences with Brazil; the largest importer of this product, of a market whose epicenter is Mendoza.
Juan Chapinoto, head of the entity, said that the low price of Chinese garlic, the delayed exchange, the lack of input and other factors have complicated the situation in the province. But mostly, he focused on the trade dispute with Brazil over the issue of non-automatic licensing to delay closing contracts, in retaliation for barriers imposed on the entry of products from that neighboring country.
"These are policy issues concerning the economy, they must not become structural, it should come first once the crisis passes, sanity, should be the basis of understanding, so that we can complement each other. I believe we will reach some agreement," Chapinoto outlined.
Regarding the friction that emerged from the trade restrictions imposed by the government of Cristina Kirchner to take care of the numbers of the balance of trade, the producer said that this led the Brazilians to type the bilateral business, hurting Argentine producers.
"This gives the Brazilian importer the handle on the business. When everything is fine, the license comes quickly but if not, it does not arrive. Therefore the person who manages the business is the Brazilian importer to the detriment of our importers," he added.
Source: Diariouno