Apr 15, 2009. /Lesprom Network/. Sharp declines in Brazilian furniture exports to Argentina have been appearing, similar to a cycle observed in 2000 and 2001. This has been caused by a strong deceleration of the Argentinean economy, as ITTO informed Lesprom Network. The Association of Furniture Companies of Rio Grande do Sul (MOVERGS) reported that in the first bi-month of 2009, Brazil’s exports to Argentina were 51% less than the same period of last year ($6.4 million in 2009, compared to $13.1 million in 2008). This was the worst fall since 2004. The average annual growth in exports to Argentina between 2004 and 2008 was 72% per year. However, the average drops to 39.5% if the first two months of 2009 are included. The annual average growth rate of Brazilian furniture exports between 2004-2008 was 10.6%, but if including results from the first two months of 2009, it slows down to only 2.1%. Additionally, a new trade rule in Argentina requires importers to have an import license for Brazilian furniture products, which is considered to some a new obstacle in the bilateral relationship. The measure has been the subject of negotiation between the governments. Venezuela has already adopted the license system and Ecuador has recently increased import tax from 24.5% to 60.5%. These markets do not have enough mills to meet their demand. One-third of shipments of Brazilian furniture go to the European Union (EU). However, the situation there is not unlike that in Argentina. In the first two months, exports to France decreased 38.6%, 19.1% to the United Kingdom, 11.1% to Germany, 11.5% to the Netherlands and 50% to Spain. Brazil closed its January - February balance with a 31.7% drop in furniture exports over the same period of 2008 ($96.5 million against $141.2 million in 2008).