* Industry minister sees currency gaining against dollar
* Minister: govt will adopt more trade defense mechanisms
* Favors extending tax breaks to construction, appliances (Adds, detail, quotes, background, byline)
By Raymond Colitt
BRASILIA, Oct 1 (Reuters) - Brazil's Industry and Trade Minister, Miguel Jorge, said on Thursday the government will step up trade protection measures as the currency gains strength, and that he wants to renew tax breaks for the country's construction and home appliances industries.
"We are not going to obstruct imports. What we're going to do is act more on trade protection," Jorge told Reuters, referring to anti-dumping tariffs it adopted against Chinese shoes last month.
Exporters say a stronger real
An inflow of U.S. dollars and a widening trade surplus would further strengthen the Brazilian currency, Jorge said.
"The trend is for the dollar to weaken further in Brazil and abroad," Jorge said in an interview.
Most Brazilians refer to the dollar when they talk about their own currency and its exchange rate.
Brazil adopted a host of temporary tax and financial incentives for its domestic industry to help weather the global economic crisis. Jorge said he favored renewing those tax breaks through the end of the year for the home appliances industry and through the end of 2010 for construction.
"I'm in favor. I will negotiate with the finance (ministry) to renew it through the end of the year," he said in reference to the tax break on home appliances.
"I don't see a problem, the foregone tax revenue is small," Jorge added.
Some of the tax breaks are set to expire before the end of the year. (Editing by James Dalgleish)