Algiers – The Brazilian minister of Development, Industry and Foreign Trade, Miguel Jorge, said this Tuesday (27) in Algiers, capital of Algeria, that the measure taken by the government, of demanding previous import licensing (IL) for nearly all products purchased abroad by the country, is not a setback. In practice, the demand for the IL comprises a non-tariff barrier, as it bureaucratises and slows down the import process.
Jorge, who is heading a trade mission to North Africa this week, mainly aimed at fostering the expansion of trade between the region and Brazil, stated that the decision was not made for protectionist reasons, but rather for technical ones.
He said that toward the end of last year, a discrepancy was detected between foreign trade statistics compiled by the Ministry of Development and the Ministry of Finance, a problem that persisted in early 2009. “We have decided to hold back imports a little in order to review the statistics,” he asserted.
The Brazilian trade balance is running consecutive weekly deficits since the beginning of January. The demand for IL was a practice adopted during the military dictatorship and up until the early 1990s, when the economy of the country was very closed. By means of it, the government was able to maintain control over what was or was not imported.
Jorge ensured that mandatory previous licensing is going to be temporary, lasting until the statistics are reviewed, and that automatic clearance will soon be resumed.
*Translated by Gabriel Pomerancblum
