• Categories
  • Archives

To Fight China Brazil Wants to Tax Shoes and Textiles Up to 35%

China footwear Brazil is considering requesting a waiver from Mercosur with the purpose of hiking the common external tariff (AEC) on shoes and textiles from 20 to 35%, if Uruguay refuses to accept the proposal, reports the São Paulo press.

Mercosur decisions must be adopted in consensus by the four country members, (Brazil, Argentina, Uruguay and Paraguay) although the waiver mechanism enables one of the members to adopt an autonomous decision as long as the remaining consent.

Brazil's Planning, Industry and Foreign Trade Minister Miguel Jorge said during a Brazil/Mexico business meeting that President Lula's administration could request a special waiver from Mercosur to up the AEC on foot wear and textiles.

"Paraguay has already accepted to hike the AEC. Uruguay is considering it. But we can apply a waiver during the negotiation process, independently of whether Uruguay accepts it or not", said Jorge, quoted by Brazilian daily O Estado de S. Paulo.

So far the Uruguayan government has not taken a definitive position on the issue. Regarding textiles the Uruguayan government is working out a system of fiscal compensations for its industry and in footwear, even when there's a favorable approach from the Ministry of Industry to hike tariffs, there's fear that the situation could lead to a general increase in the price index.

Brazilian businessmen from the footwear and textiles sectors requested an increase of the AEC to stop the massive influx of Chinese imports. Lula da Silva administration took the proposal to Mercosur country members. Paraguay accepted and Argentina also but suggested that the hike should not be higher than 28%. Last week Brazil's Deputy Development, Industry and Foreign Trade minister Ivan Ramalho visited Uruguay to insist on the issue.

Mercopress

Tags:

  • Show Comments (1)

  • ch.c.

    Ahhhhh….ahhh….ahhhhhh……
    Therefore why the EU and the USA dont do the same on your agricultural exports….USING WORD FOR WORD….the same arguments you have against China ?????

    Lets face it, except in agricultural products because you have the climate and enough land, you are not competitive elsewhere !!!!!
    You have the other developing nations productions cheaper and better than Brazilians products for semi manufactured and Industrial goods and you have the EU, USA and Japan for everything that is technology and advanced Industrual goods and financial services.

    In my view…you are jus good to export Iron ore, Orange Juice, Grains, Coffee, Sugar and ethanol.
    Even you cars and trucks manufacturers are 100 %……FOREIGNERS !!!!!!!!

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Strikes Light Oil Under 2 Kms of Salt

Petrobras, Brazil’s state-owned oil company, confirmed  in a press statement, the existence of light ...

The Café

Her hand reached for the finely stained French-style door, and she thankfully shut out ...

Brazilian Press Doesn’t See Argentina on Brink of Collapse

Brazil's media seems to consider that neighboring Argentine President, Cristina Fernandez de Kirchner "backstepped" ...

A Mercosur summit on July 2006

Brazil and Neighbors Start Bank and Take Steps for Common Currency

Paraguayan President Nicanor Duarte and Mercosur ministers of Economy and Foreign Affairs decided Tuesday, ...

Brazil’s Tapeba Indians Want Their Land Back

For many years, the Brazilian State claimed that there were no indigenous people in ...

LETTERS

The first cases of AIDS in Brazil were diagnosed in São Paulo and Rio ...

Bolivia’s Oil Nationalization Prompts Brazil and Neighbors’ Summit

An urgent regional presidential summit has been called for next Thursday, May 4, to ...

67%: Senate Scandal Hasn’t Hurt Lula’s Popularity in Brazil

Luiz Inácio Lula da Silva, the president of Brazil, has an approval rating of ...

Surely you must be joking, Mr. Niemeyer

People don’t seem to live in Brasília in the true sense of the word—they ...

Brazilian Armed Forces Complain of Obsolete and Broken Equipment and Low Wages

Brazil's armed forces, the largest military in Latin America, are badly equipped, demoralized over ...