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Brazil: Argentina delays trade restriction

SAO PAULO, July 6 (UPI) -- Brazilian officials said Tuesday Argentina will delay its plan to restrict certain Brazilian imports so the two nations can discuss the issue.

However, Argentina denied such an arrangement.

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Brazilian Trade Minister Luiz Furlan said he would speak with Argentina's Economy Minister Roberto Lavagna Wednesday during a meeting of Mecosur trade bloc nations, comprised of Argentina, Brazil, Paraguay and Uruguay.

Earlier Tuesday, Brazilian manufacturers balked at the import restrictions Argentina placed on certain goods, saying it would cost the country thousands of jobs.

Brazil's National Association of Electronics Manufacturers said in a statement, "the measures are unjustifiable and hurt the established free trade rules of Mecosur."

Lavagna announced Monday a series of measures halting Brazilian imports as part of an effort to create more jobs in Argentina. Among the Brazilian-made items being barred from Argentina are refrigerators, washing machines and stoves. Heavy duties were placed on the import of television sets. Imports of most of these items have increased more than 100 percent during the past year, Lavagna said.

Argentina is still recovering from its 2002 economic collapse, when the nation defaulted on billions of dollars in foreign loans and unemployment neared 25 percent nationwide.

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