Brazil-Ban on imports.

BRAZIL.

BAN ON IMPORTS.

Brazil has implemented measures that impose restrictions on more that 60% of all imports as a way of reducing the impact of the global crisis on its balance of payments-which so far this year has posted a deficit of US$600 million.

The trade barriers would affect Argentina, which is highly dependant on Brazil for exports and Brazil is the main trading partner of Argentina.

The deputy head of Brazils Development Ministry Ivan Ramalho, said in Buenos Aires after a meeting with Argentina Industry Secretary Fernando Fragufo, that the two governments were deeply concerned about the situation and the imbalances.

Sources say that the news of the trade restrictions was not known to the government of Argentina before the meeting.

Brazils Foreign Trade Department has already begun to impose tariff barriers and set up an import license scheme.

Brazil has made 650,000 people redundant in San Paulo alone for December and a further 185,000 in January as the effects of the recession take a hold.