In a joint note, the Ministries of Economy and Foreign Affairs announced a 10% reduction in the 87% import tax on products in the tariff universe, except for goods such as automobiles, sugar, and alcohol, which already enjoy a differentiated treatment by the bloc. According to the file, since Mercosur’s rules prohibit a unilateral reduction of tariffs – that is, without the approval of all members of the bloc – Brazil will resort to a device that allows for the possibility of adopting measures aimed at protecting people’s lives and health. “The use of this device is justified by the urgent situation brought on by the Covid-19 pandemic and by the immediate need for an instrument that can contribute to alleviating its negative effects on the life and health of the Brazilian population”, according to the file. The reduction was adopted by CAMEX (the executive management committee of the foreign trade chamber) and will remain in effect until December 31, 2022. The size of the reduction was in line with what was agreed with Argentina in early October during a visit by its ministers to Brazil.
Sources: Canal Rural/Datamar News