Brazilian Finance Minister Guido Mantega and Ricardo Schaefer, Deputy Director of the Ministry of Development, Industry and Trade of Brazil (Acting Minister), held a joint press conference on August 1, 2013 to announce that they will be adjusted from September 1 this year to September 2012. The tariff rate of about 25% of the 14 categories of high-grade products is adjusted back to 8% to 12% of the average tax rate. A total of 100 products in the 14 categories include steel, glass, chemicals, rubber and plastic products, tires, paper and pulp, textile products, transportation equipment, food industry, petroleum derivatives, shoes, firebricks, cables and wires and machines. And equipment production.
Minister M also stated that the main purpose of the Brazilian government's decision to implement this measure was to reduce the impact of the appreciation of the US dollar on Brazil’s inflation and to increase the competitiveness of the Brazilian semi-finished product market so that manufacturers could import lower-cost semi-finished products. In addition, this measure also has the effect of lowering import prices through tariff reductions to ease pressure on Brazil to face inflation.
M added that the import tariffs of 100 products raised in September 2012 had no longer been necessary to continue the extension. As the related industry in Brazil has gradually improved its physical fitness, the industrial competitiveness has been strengthened, and it is now possible to cope with the competition of foreign products. The Brazilian government decided to revert to normal import tariff rates.
In September 2012, the Brazilian government decided to increase the import tariffs of the aforementioned 100 products in order to protect the competitiveness of Brazilian companies in the domestic market. The Brazilian government hopes to provide Brazil’s industrial buffer time to adjust its physique by increasing import tariffs. In the face of foreign competition for imported products.
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