Brazilchile among the largest exporters of wine to brazil, chilean producers are worried with the possibility of the brazilian government adopt safeguards to protect its local industry. While the ministry of development, industry and commerce mdic is deciding if will impose safeguards against imported wines, the brazilian wineries are trying to improve the quality of the national drink. Local industry are projecting to invest more than us 110 million in eight years, plus 40 million in a marketing program to stimulate domestic consumption of wine. The decision was disapproved by local shops and restaurants inrio de janeiro and são paulo, that generated a boycott and, in certain cases, the complete removal of national labels offered.
Brazilian wineries argue that the share of imports in domestic consumption of fine wines grew 67.1 to 78.7 from 2006 to 2010, reaching 78.8 of the market in 2011, which totaled 92.2 million liters, according to local entities. As the brazilian wine institute revealed, the imports of fine wines bybrazilgrew 34.4 in the first quarter compared with the same period of 2011 to 8.5 million liters. Throughout the past year, domestic production accounted for 21.2 of total demand in the segment, from 92.2 million liters.
Chilean wines lead the ranking of fine wines imported intobrazil, with 2.9 million liters in the first quarter, followed by argentines, with 1.9 million liters 32.9 growth. As a reaction to that, the first thingchiledid was hire sector experts to prepare the arguments already presented to the brazilian authorities. Among them is that chilean exports tobrazildoes not damage the industry in that country and does not represent dumping. Argentinean producers can be indirectly benefited by the safeguards, since their wines are protected by a mercosur agreement, as well as south african and israeli wines under other commercial agreements.
