Subscribe free to our newsletters via your
. Earth Science News .

Brazil says tariff hikes not protectionist
by Staff Writers
Sao Paulo (UPI) Sep 6, 2012

disclaimer: image is for illustration purposes only

Brazil is raising import tariffs on 200 commodities but insists it's not pursuing protectionism in the style of neighbor Argentina, which faces punitive action from Europe and the United States.

Tariff hikes of up to 25 percent will affect 100 import categories and will be followed in October with further tax rises on another 100 categories. Most of the affected items are capital goods from various industries, including petrochemicals and steel.

The first list of 100 goods affects imports from outside the Mercosur trade bloc.

The tariff hikes, which were expected, are part of a government attempt to stimulate domestic production, officials say. Despite that explanation, the tariffs are seen by the industry as double-edged and likely to invite retaliatory steps.

Huge cash surpluses from Brazil's commodity export boom have boosted earnings and in turn consumer demand but also slowed manufacturing growth and development of new industries in Brazil.

Brazilian manufacturers say they are up against cheap imports from China and other trade rivals and cannot compete. Backers of the government program to stimulate industrial growth in the country say Brazilian manufacturers can win over customers lost to cheaper imports if they become competitive in both price and quality.

Officials say the higher tariffs are aimed mainly at inducing local producers to do more and compete effectively and the tax hikes are temporary. The import tariffs will "automatically" respond to positive developments in local production and prices and will come down through a mechanism developed by the government.

For example, officials say, if the higher tariffs lead to price rises in domestic markets, the tariffs will come down automatically. But importers say they aren't so sure about that and are unhappy over the potential loss of business.

A monitoring scheme promised by the government will keep a close watch on local prices of imported goods affected by the additional duties. If prices rise as a result of the import duties, officials say, the government will immediately reduce the duties to keep domestic prices in check.

Various interpretations of the "mechanism" have confused traders.

Despite the elaborate assurances and ambitious checks-and-balances programs, the protectionist flavor of the new measures isn't lost on the industry and importers, who say they fear Brazil may face retaliatory steps in the same way Argentina faced international opprobrium. Officials said the tariff hikes stayed on the right side of the World Trade Organization laws.

Trade and Development Minister Fernando Pimentel said, "What we are doing is in the framework of the WTO rules and is not protectionism."

About 300 items were considered for tariff reviews, of which 100 were selected and another 100 are on a short list still under study.

Officials will continue to monitor potential impact on imports and the economy as a whole, Pimentel said.

Meanwhile, Argentina has received warnings from U.S. and EU officials that the company faces measures that are likely to curtail its exports to the two destinations.


Related Links
Global Trade News

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

'Green' products trade gains momentum in APEC
Vladivostok, Russia (AFP) Sept 6, 2012
A push to boost Asia Pacific trade in environmentally friendly goods gained momentum Thursday as officials agreed to cut tariffs on bamboo floor panels, solar batteries and dozens of other "green" products. Russian Minister of Economic Development Andrey Belousov said regional trade ministers agreed following two days of "intense" talks on a list of 54 products eligible for tariff cuts, in a ... read more

Japan slams brakes on $63 billion in spending

25 killed in ammunition depot blast in western Turkey: army

Two slightly injured in accident at French nuclear plant

Congo, China, sign 975m-euro deal to rebuild Brazzaville

Amazon takes on iPad with new Kindle Fire tablet

US judge OKs partial settlement in e-book case

Empire-style computers? Frenchman takes PCs to lap of luxury

Google-Microsoft field smartphones to take on iPhone 5

Changes in water chemistry leave lake critters defenseless

EU mackerel sanctions urged for Iceland

Vietnam warns of water conflicts

Concern about plans to close unique Canadian environmental project

Glacial thinning has sharply accelerated at major South American icefields

Russia charges Greenpeace activists in polar bear protest

Russia's unique economic position in the Arctic

Major world interests at stake in Canada's vast Mackenzie River Basin

Wild bees: Champions for food security and protecting our biodiversity

US fruit giant Dole settles 38 pesticide complaints

Spinach power gets a big boost

Bees, fruits and money

Hurricane Michael weakens in Atlantic: forecasters

Floods kill 18 in Burkina Faso, leave 21,000 homeless

China quakes kill at least 80

Mount Fuji 'under more pressure than last eruption'

Nigeria trains more peacekeeping troops

Kenya readies Somali Kismayo attack

Rebel chief returns to Chad after surrender

Weapons destined for Mali held up in Guinea since July

Major advances in understanding the regulation and organization of the human genome

Yale team finds order amidst the chaos within the human genome

Benign malaria key driver of human evolution in Asia-Pacific

DNA of ancient human decoded

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement