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An agreement which limits the export of some Chinese textile products to Brazil went into effect on April 3. The voluntary restriction accord, settled between Brazil and China on March 3, will prevail between 2006 and 2008.

According to the secretary of Trade at the Ministry of Development, Armando Meziat, "There is no tension in the relations between China and Brazil because of the agreement."

The accord establishes limits for 8 types of Chinese imports: velvets, embroidered goods, knitted shirts, polyester textured threads, sythetic fibers, silk fabrics, sweaters, and pullovers. The 8 groups cover 76 different items that correspond to 76% of the imports in this area.


Under the terms of the agreement, importers will have to receive prior authorization (in the form of non-automatic licenses) from the Brazilian government to close deals with Chinese exporters.

Meanwhile, the Brazilian government is drawing up a list of other products that are seen as threatened by Chinese imports, such as bicycle gears, hair brushes, sun glasses and others, which will be negotiated with China in the future. Meziat says the key to success in dealing with such trade problems is negotiations. "Before we adopt safeguards, we make preliminary consultations," he explained.