Non Tariff Barriers to Trade in Mercosur: Focusing Brazilian Exports of Steel Products
IPEA Discussion Paper No. 792
43 Pages Posted: 15 Nov 2001
Date Written: May 2001
The main aim of this paper is to identify and to analyze the presence of Non Tariff Barriers (NTBs) imposed to Brazilian exports of steel products by Mercosur's member countries. The NTBs were identified through interviews with Brazilian companies and through questionaries sent to Brazilian firms that export over one hundred thousand dollars yearly. Brazilian companies did not identify any NTBs imposed by Paraguay and Uruguay. Argentina, the second largest steel producer in Mercosur, is the only trade partner that uses NTBs when trading steel products with Brazil. This happens because Argentina, in order to avoid a sharp drop in its domestic production, had to protect its firms from external competition after the fall in its internal demand. The Argentine alternative strategy to avoid reducing domestic production would be to raise exports. This became difficult since world prices and demand fell after the Asian Crisis and since Argentine prices are not competitive when compared to its Asian and Eastern European counterparts. The main NTBs imposed by Argentina identified by Brazilian companies are of four types: a) safety and industrial standards and regulations; b) antidumping duties; c) discriminatory bilateral agreements; and d) customs clearance procedures.
JEL Classification: F1
Suggested Citation: Suggested Citation