The Brazilian Rice Industry Association (Abiarroz) sent a letter on negotiations to reduce Mercosur’s Common External Tariff (TEC).to the Minister of Economy, Paulo Guedes. The document defends the free market and recognizes the need to revise the TEC, proposing “the adoption of measures that guarantee equal conditions to compete internationally, to prevent the national rice chain from suffering losses in the countryside and in agribusiness”. According to Abiarroz, reducing the tariff may not bring the expected results because of the high cost of rice production in Brazil. TEC reduction may vary on average from 7.6% to 9.4% for different types of rice. In this period of pandemic, with restrictions on transport and inputs, the cost of packaging has grown by 113%, while freight cost has surpassed 300%. Energy and hiring labor have also become more expensive.
Source: DATAGRO (*Translated by Ia Niani)