REDUCTION OF MERCOSUR COMMON EXTERNAL TARIFF (CET) MAY NOT AFFECT INTERNAL GRAIN MARKET

Brazil supports Uruguay’s plan to reduce Mercosur’s Common External Tariff by 20% by the end of the year. According to the Ministry of Economy, each country in the bloc has different needs and different demands to reducing tariffs. The market analyst Vlamir Brandalizze says the reduction will not generate crucial changes in the grain market, but it can help business. “The soy and corn market will probably have a slight change since volumes are small, for our domestic price formation is basically export values. We will only have support in times of corn shortage, mainly because we rarely lack soybeans.” “In addition, eliminating some of the excess bureaucracy is the only thing that would really help, as market becomes more and more open and favorable”, explains Brandalizze.

Source: Canal Rural (*Translated by Ia Niani)