Why this is important to Wisconsin businesses: The fee reductions will allow internal prices to adjust and facilitate the entry of exports from Wisconsin companies to the Brazilian market.
Brazil is cutting import tariffs by 10% in a move designed to curb inflation.
Brazilian Economy Minister Paulo Guedes said the reduced fees will apply to 87% of goods and services and will remain in effect until Dec. 31, 2022.
Agricultural products—including ethanol, beef, processed cheese, whey protein and blueberries—are among those affected, according to the U.S. Department of Agriculture’s Foreign Agricultural Service.
Products that will not see a tariff reduction include automobiles, auto parts, textiles and toys. Also, products listed on the Mercosur common external tariff exception list will not be affected. Mercosur, or the Southern Common Market, is a South American trade bloc consisting of Brazil, Argentina, Paraguay and Uruguay.
The resolution was approved by the Chamber of Foreign Trade’s Executive Management Committee. It lists the new, temporary tariffs for the products affected and says an emergency brought on by the COVID-19 pandemic required the government to act.
Brazil’s Ministry of Economy said the goal of the tariff reduction is to curb inflation: lowering domestic prices by lowering the cost of imports.