Brazil’s
government decreased the import duty on steel rebar from 10.8% to 4% on
Wednesday to bring the rate in line with that of other countries, according to
the Economy Ministry. The new rate, according to Ana Paula Repezza, executive
secretary of the ministry’s Foreign Trade Chamber, conforms “to the
international average for these categories of items.”
According to Repezza, a reduction for other categories of steel products “is
not yet under review as we have not yet received claims for other products”.
The Economy Ministry also announced the removal of import tariffs on food
products starting from Thursday until year-end, in this case acknowledging the
goal of easing inflation.
She told a news
conference the move was technical and rejected the suggestion that it was
designed to reduce inflationary pressures amid a surge in consumer prices to
12.1% in the 12 months through April. After a meeting with Economy Minister
Paulo Guedes on Tuesday, industry group Aço Brasil said that only steel rebars
would be affected by the government’s decision to lower tariffs on several
products, including steel.
The measure will
affect beef, chicken meat, wheat and wheat flour, crackers and biscuits, corn
and other bakery products. The government also canceled tariffs for imports of
sulfuric acid, used in fertilizers, and reduced the rate for mancozeb fungicide
to 4% from 12.6%, lowering agricultural production costs.
All products were
included in the differentiated import tariff regime for Mercosur members, which
allows rates to be zeroed without the need to negotiate with other members from
the South American trade bloc. President Jair Bolsonaro, who is seeking
reelection in October, has already reduced taxation on industrialized products
(IPI) and eliminated tariffs on ethanol and six other basic food products in an
attempt to curb inflation.