Brazil Announces Tariff Increase on 100 Items, Additional 100 to Follow in October

September 7, 2012

On September 4, 2012, Brazil’s Foreign Trade Chamber (CAMEX) announced a list of 100 goods from the steel, petrochemical, chemical, pharmaceutical and capital goods industries on which it plans to increase import tariffs to as much as 25%.  Brazil is expected to increase tariffs on an additional 100 products in October.

The proposed tariff increases are part of a policy approved last year by Mercosur.  The tariff increases, which would take effect on September 25-26, 2012, must now be approved by the other members of the trade block. Brazil is expected to consult with the other Mercosur countries and will provide 15 days for their comments.  If approved, the tariff increases will remain in place for one year, but can be extended for additional 12 month periods through December 31, 2014, when the Mercosur policy allowing such higher duties will expire.

The proposed tariff increases are designed to aid struggling domestic manufacturers and are in keeping with World Trade Organization (WTO) rules, which allow for elevating tariffs up to 35% for twelve months, with the possibility of a twelve month extension. According to Trade and Development Minister Fernando Pimentel, the agency is currently undertaking a technical study on certain imports’ effects on the domestic economy in order to select an additional 100 goods on which to raise tariffs in October.

Please contact a Barnes/Richardson attorney for additional information concerning the list of goods subject to higher tariff rates.