Lula supports Brazilian exporters selling to Argentina

During a meeting with business leaders, President Luiz Inácio Lula da Silva reiterated his support for implementing measures to safeguard Brazil’s access to the Argentine market, as the neighboring country—Brazil’s third-largest trading partner—is facing economic difficulties.

Lula stated, “Our objective is not only to assist Argentina but also to support Brazilian exporters who rely on trade with Argentina. This is the concrete fact.” He made these remarks during an event held at the Federation of Industries of the State of São Paulo (Fiesp) on Thursday, May 25.

Argentina is currently facing another severe economic crisis marked by the devaluation of the peso – the local currency, diminished purchasing power, and high inflation rates. In March alone, inflation in the neighboring country reached 104% per year.

Traditionally, Brazil exports industrialized items to the Argentine market and buys manufactured goods from the neighboring country. Bilateral trade is concentrated in the automotive sector, metallurgy, and petrochemical products, with a total trade value of approximately $13 billion.

Earlier this month, Lula hosted a meeting with Argentine President Alberto Fernández in Brasília, during which he expressed Brazil’s commitment to negotiate with the Brics—the economic bloc composed of Brazil, Russia, India, China, and South Africa—as well as with the International Monetary Fund (IMF) to explore possible assistance options for Argentina.

One of the measures under consideration is the establishment of a credit line aimed at financing Brazilian companies engaged in exporting to Argentina. This initiative seeks to mitigate the foreign trade restrictions that impede Argentina’s ability to pay for its imports, given that its local currency is not convertible for transactions with other countries.

Lula highlighted that China had already made a similar move by offering a $30 billion financing package to support exports to Argentina. Brazil has been witnessing a decline in its market share in Argentina, with China emerging as the country’s primary commercial partner.