15 years and Nothing has Changed the New Tire Makers still out to destroy the sellers of Used Tires.

Reprinted from NY times.
Quoting Howard Levy about used tires in 1993 now 15 years later their appears top be import problems again even after the world trade organization ruled in favor of Used Tire Importers. Levy has said since the early nineties and maintains today the Tire Makers appear to be violating US antitrust Laws
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Brazil Opens Its Borders to Goods From Abroad



By JAMES BROOKE, NY TIMES
Published: August 16, 1993

As a result of all these sales, the nation's trade surplus with the United States has dwindled, falling to $1.8 billion in 1992 from $5 billion in 1988. During that period, American exports to Brazil grew by 35 percent, hitting $5.7 billion last year. Over all, Latin America constitutes the world's fastest growing market for American exports.

Brazil's imports from all nations hit $11.1 billion during the first half of 1993. This was the highest level on record and an 18 percent increase from the comparable period last year.

Japanese and Korean consumer goods are also entering Brazil's market, but American exporters seem to enjoy an edge based, in part, on Brazilians' long-term cultural affinity with the United States.

Every year, about a million Brazilians study English at private language academies. This year, about 400,000 Brazilians are expected to visit the United States, the most popular tourist destination for Brazilians.

Brazil's economy -- which accounts for about 40 percent of the Latin American economy -- is expected to grow by 3 percent this year; as a rule, every 1 percent of new economic growth in Latin America increases United States exports by about $5 billion, according to Peter Hakim, president of the Inter-American Dialogue, a private study group in Washington. By comparison, every 1 percent of economic growth in Japan yields only a $1 billion increase in imports of American goods.

Hidden behind the flashy new consumer goods filling shelves here, the fastest growing sector of Brazil's imports is capital goods. Brazilian companies have responded to the competition by either seeking Government protection or by investing to make their factories internationally competitive.

Textile manufacturers, auto makers, tire manufacturers and growers of rice and wheat have all demanded import quotas in recent months.

"It seems to be a lot tougher for Brazilians to get licenses to import used tires this year," said Howard J. Levy, president of Tire Source Inc. of Pompano Beach, Fla., a major used tire exporter. He attributed the change to pressure by Brazilian tire manufacturers.

So far, however, the Government has resisted calls for import quotas, and in their absence many companies are cutting prices and improving products to compete with the imports.

Brazil's car industry, dominated by local operations of Ford, Fiat, General Motors and Volkwagen, plans to invest $2 billion to modernize production lines in the 1990's. This year, the industry plans to introduce 10 new models; it normally introduces two models a year. Productivity Gains

With tariffs on imported cars now at 35 percent, down from 85 percent in 1990, car manufacturers have increased worker productivity by 46 percent since 1990, according to a study by Exame, Brazil's leading business magazine.

"Our imports are only to fill niches in our product line," said Cassio Pagliarini, marketing plan manager here for Ford. In addition to the Explorer, Ford plans to start importing Taurus cars from the United States in March. By the end of this year, General Motors do Brasil plans to start importing Calibra cars from its German factories and Lumina APV mini-vans from a factory in Tarrytown, N.Y.

Over all, car imports are expected to hit 30,000 units this year, only 3 percent of Brazil's expected domestic production of one million cars.

In the processed food sector, Brazilian companies reacted to the import threat by improving packaging and by introducing 600 products during the first half of this year -- twice as many as during all of last year.

Prices in the electronics sector have dropped by an average of 40 percent since 1989, according to a survey by Veja, a weekly news magazine, which reported that the price of a locally made Gradiente videocassette player fell to $464 from $1,125. The price of a Sharp fax machine dropped to $630 from $1,600.

But the developments -- a boon for consumers and importers -- have often meant a loss for Brazilian workers. Many of the cost savings have been achieved by importing parts and laying off workers. Over the last four years, Gradiente increased the foreign-made portion of its television from 5 percent to 80 percent, while slashing its work force to 2,700 employees from 9,000.
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