Brazil's National Industry Confederation (CNI) has asked the Ministry of Foreign Affairs (MRE), at a meeting held in July,2016, for the termination of the agreement between Brazil and Chile on Maritime Transport, signed in April 25th, 1974 and promulgated by the Decree number 75246/1975, reiterating the confederation's previous position .
The treaty establishes that the maritime transportation of goods between the two countries, with the exception of oil and its liquid derivatives and natural gas, will be mandatorily made in Brazilian and Chilean flagged vessels, including the cargo that receives governmental benefit in either countries.
The use of other country flagged vessels for transportation is only allowed when there is no availability of Brazilian or Chilean flagged vessels.
According to CNI, there is an excessive amount of freights made on the routes traced by the treaty, which affects the commerce of Brazilian goods traded in Chile.
In spite of this, the National Union of Maritime Navigation Companies (Sindicato Nacional das Empresas de Navegação Marítima – SYNDARMA) opposes to the end of the agreement, but consents on a dialogue about the subject.
A representative of the Ministry of Foreign Affairs stated that the government's decision on the matter will not only consider the understanding of the stated Ministry, but will also the considerations of the Ministry of Transport, Ports and Civil Aviation, and the Ministry of Industry, Foreign Trade and Services.
Notably, the agreement is automatically renewed every 5 years, unless one of the countries, at any moment, informs the other, with the minimum anticipation of one hundred and twenty days, the intention to terminate it.
Until now, there is no scheduled date for the deliberation of CNI's pleading.
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