With difficulties in advancing negotiations with Mercosur partners to reduce taxes on importing products from outside the bloc, Brazil decided to do this on its own. In a joint note, the Ministries of Economy and Foreign Affairs announced a 10% reduction in the Import Tax rates of 87% on products sold with countries that are not in the group, keeping out goods such as cars and sugar and alcohol, which already have a differentiated treatment by the block.
As Mercosur rules prohibit the unilateral reduction of tariffs, that is, without the approval of all members of the bloc, Brazil will resort to a device that allows the adoption of measures aimed at protecting people’s lives and health . According to information supplied by the State, the intention of the Ministry of Economy is that the measure will allow for an “import shock”, which should be used by the government in response to the escalation of inflation in recent months.
Source osul.com
