Brazil To Eliminate Import Tariffs On Basic Food Items

The Brazilian government, led by Vice-President Geraldo Alckmin and following directives from President Lula da Silva, has announced a significant move to reduce import tariffs on nine food items and increase the import quota for palm oil. This initiative aims to combat high inflation rates and lower the cost of living for Brazilian consumers by allowing more affordable imports of essential food products. The tariff reductions, expected to be ratified by the Foreign Trade Chamber (Camex), include slashing tariffs on meat, coffee, sugar, and various oils, as well as staples like sardines, biscuits, and pasta. This strategy is designed to enhance competition, bolster consumer welfare, and ensure that imports do not undermine local producers, but rather complement their output. Additionally, the government intends to strengthen food reserves, support domestic producers, and streamline the inspection process for animal products to expedite the availability of key food items. This strategic pivot is in response to rising food inflation and falling approval ratings for President Lula da Silva, driven by concerns over Brazil's escalating inflation and high cost of living.

The Brazilian government has announced that it will eliminate import tariffs on nine food items in an attempt to lower prices and control inflation in Brazil. The list includes meat (current import tariff is 10.8%), coffee (9%), sugar (14%), corn (7.2%), olive oil (9%), sunflower oil (9%), sardines (32%), biscuits (16.2%), and pasta (14.4%). Additionally, the import quota for palm oil, currently at 65,000 tonnes, has been increased to 150,000 tonnes. This move, announced by vice-president Geraldo Alckmin, aims to increase competition and benefit consumers. He believes the tariff cuts will not hurt domestic food producers, arguing that the imports will supplement, not compete with, local supply during this time of high food prices. Alckmin emphasised that fluctuating prices are a normal market function, and the current market conditions necessitate tax reductions to benefit consumers. These tariff reductions will come into effect in the coming days, following approval by the ...