Chemical industry defends trade liberalization, but fears speed

Despite the trade deficit, the chemical industry sees the economic direction of the future Government of Jair Bolsonaro, which provides greater trade opening, and expects the best conditions of competitiveness to be created. "Various productive sectors have 35% import tax and the chemical industry has 7%. If we already remove the portion of the products are not produced in the MERCOSUR region. We are against ending the commercial defense, what is different from protectionism, "said the President of the Board of Directors of the Brazilian chemical industry Association (Abiquim), Marcos De Marchi, in press conference on Friday (07). The leader understands that must be defended only what is produced on a large scale in the country. "If you open up a link so mistaken, there's the risk of breaking the chain. We hope that there is this understanding of the next Government. " The entity estimates that the trade balance deficit will reach US $ $29.1 billion in 2018, an increase of $ $5.6 billion in about 2017. "The number had fallen because of the recession, now grew back. About a quarter of the industry's revenue comes from imports, "said the Vice-President of the Board of Directors of Abiquim, Fernando Musa. To De Marchi, half that shortfall could be covered with local production. "Currently, there are between 20% to 25% of idle capacity. If the economy reheat, there may be a quick positive effect in the sector through this occupation. " Musa believes the Government will implement the necessary measures to adjust the economic environment of the country. "It is essential that the social security and tax reforms and that if cut the knots that hinder advances in infrastructure and logistics." The Chief Economist of the Government transition team Bolsonaro, Carlos Alexandre da Costa, says the focus will be to attack the so-called cost Brazil. He stressed that the resolution of these issues depends on the private sector. "We must reverse the logic of the last years, in which companies hoped that the Government of that first step. What we intend to do is a great cleaning process that toggles the productive sector, "he said at an event. Costa has exposed that the actions will be geared to unlock the productive sector and resolve infrastructure issues. He also pointed out the existence of an exaggeration of monopoly power of market players, including Petrobras. "We have ambitious plans to improve competitiveness", he points out. The talks are in line with the Declaration of Marco De Marchi, that "the chemical industry doesn't want subsidies and not protection, less cost Brazil." The leader also made mention to eliminate the monopoly of the country's oil and cited that 73 proposals were given for the transition team. "None of them need subsidies or raise public spending", guaranteed. Among the applications, was the alignment of prices of raw materials to the international market. "We cannot continue being bled by a monopoly." Costa revealed that there was a request to the entity that priority for some proposals. "You can't do everything. Of these 73, we prioritize some through discussions, to create an agenda that values who produce and create safeguards to compensate for difficulties. " Swing the Abiquim estimates that the revenues of 2018 will total $ $127.9 million, an increase of 5.4% from 2017. "After going through the worst recession that we've lived, the sector grew back. But those numbers hide a challenge. We returned to the level of 2010, we had almost a lost decade, "said Musa. Of this total, $ $65.2 billion represent the segment of industrial chemicals, 5% advance. About 2019, the entity expects continued growth. "The chemical industry grows with enough elasticity in relation to GDP. The industry will adapt to expected levels, "said De Marchi. The leader didn't want to detail the potential effects of trade war between the U.S. and China. "Varies a lot of products and sectors. But this is no time to make reckless moves. Let's be vigilant. "