May 17, 2011

Brazil to tackle triangulation of goods

Reuters reports (via China Post):

Brazil will take new steps to protect local industries from a strong exchange rate, including an investigation of Chinese imports that come in improperly through other countries, its trade minister told Reuters on Friday. Fernando Pimentel said the probe into the so-called “triangulation” of goods would be the first of its kind in Brazil. The first case will involve blankets from China that were routed to Brazil through Paraguay and Uruguay, with further investigations expected in coming months, he said. The measures come as Brazilian President Dilma Rousseff faces enormous pressure from manufacturers, a key constituency, to slow an avalanche of imports from abroad, especially China. Brazil's currency is trading near decade-long highs, thanks to its booming economy and a flood of capital from the developed world.

ht: the bunk

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