The assessment is by José Velloso, executive president of the association of machinery and equipment manufacturers
Brazil needs to tackle the problems that undermine the industry’s competitiveness in international competition to take advantage of the opportunities of the agreement between Mercosur and the European Union, which is scheduled to be signed next Saturday. If this is not the case, opening up the market to European competitors represents a risk for the manufacturing industry. The assessment is by José Velloso, executive president of Abimaq, the association of machinery and equipment manufacturers. “If, on the one hand, it is good for the end consumer, because products will be cheaper, and for agribusiness, because Brazilian agriculture has better competitiveness, this agreement is a risk for the transformation industry”, comments Velloso.
For the president of Abimaq, Brazil will have to face deficiencies that increase the cost of production in the country, such as high taxes and interest, and improve the business environment, as well as the macroeconomic situation, to transform a risk into an opportunity. “Then, yes, all sectors of the economy will be able to make better use of the opportunity that is opening up in the large European market”, comments the executive.
*With information from Estadão Conteúdo
