Rio de Janeiro – The minister of Development, Industry and Foreign Trade, Fernando Pimentel, said on Friday that the trade balance should generate surprisingly positive results, when the April figures are disclosed on Monday (02). Pimentel has increased his forecast for Brazilian trade figures, but did not want to anticipate the figures.
He only said that, among the factors that contributed to the positive results in the month, are commodity shipments [basic products traded on the international market], especially agricultural products. “The April trade balance is record,” guaranteed the minister.
He defended a reduction in energy costs in the country as a way to cheapen production. According to him, half of the price of electricity should be taxes and fees. “A great concern of the government is the cost of energy and, in the near future, we are going to have to announce measures to reduce this cost, especially for some areas of industry. The cost of energy is one of our concerns. We have to reduce it. It cannot be from one moment to the next, nor taken too lightly, as that will have a strong impact on Federal government and state revenues. But some solution has to be found,” said the minister.
Pimentel participated in the World Economic Forum in Latin America, in the city of Rio de Janeiro, alongside Rio de Janeiro state governor Sérgio Cabral Filho and São Paulo state governor Geraldo Alckmin.
Governor Cabral agreed with Pimentel’s opinion, but added that electric energy price reductions must be implemented in a federative pact, not to affect states. “I think it is a great idea. We need to make a great pact with states, cities and the federal government, so that states are not harmed.”
In the same way, Geraldo Alckmin showed himself favourable to the reduction in the tax structure levied on energy prices as a way to cheapen national production. But he placed a warning: if generation does not rise, energy may be lacking to support Brazilian economic growth. “First of all, it is very important to increase energy offer. As Brazil is currently growing much, it may not only become expensive, but also hard to come by. But that [the energy cost reduction] should be discussed in a tax reform.”
*Translated by Mark Ament
