Brazilian President Lula da Silva has expressed his support for establishing a financing line to facilitate Brazilian exports to Argentina.
During a joint press conference with Argentine President Alberto Fernández in Brasilia, Lula da Silva emphasized the need for comprehensive financing options to prevent Brazil from losing market share in Argentina to other countries.
Lula da Silva highlighted the mutual benefits that such a financing line would bring, emphasizing that Brazilian companies and workers, as well as Argentine consumers, would stand to gain.
Argentina currently ranks as the third-largest destination for Brazilian exports, while Brazil remains Argentina’s primary market for products.
The Brazilian President expressed optimism about the potential of bilateral trade, suggesting that the trade exchange could surpass the US$40 billion mark achieved in 2011.
The discussion between the two leaders also encompassed unblocking bilateral trade, impacted by Argentina’s shortage of dollars, and exploring joint projects, including potential financing from Brazilian public banks for the Vaca Muerta gas pipeline project in Argentina.
The state visit of President Fernández to Brasilia coincides with the bicentennial celebration of diplomatic relations between the two countries in August.
However, Argentina currently faces significant challenges, such as high inflation, a currency shortage, and difficulties in renegotiating its loan with the International Monetary Fund (IMF) inherited from the previous administration.
Lula da Silva has been a vocal advocate for Argentina, supporting the country’s economic interests in various international forums, including unsuccessful attempts to secure a line of credit for Argentina through the BRICS forum (Brazil, Russia, India, China, and South Africa) and its development bank.