Government considers waiving tariffs on rice, corn and soy imports to prevent price increases

The Ministry of Agriculture said on Thursday, August 27, that it is assessing the possibility of temporarily exempting tariffs on imports of rice, corn, and soy from countries that are not members of Mercosur to balance the domestic market and prevent price increases.  In a note, the agency stated that the measure, which would involve temporary inclusion of these products in the List of Exceptions to the Common External Tariff (LETEC), has been considered by the Secretariat of Agricultural Policy of the portfolio. According to the note, “this proposal should be on Gecex’s agenda in September”.

The ministry stated that the measure has “support from the productive sector” and aims to “balance the domestic market and prevent the increase in prices of products in the basic basket”. “If approved, the adoption of this measure would have a preventive character, since there are no signs of shortages and there is no need to import these products into Brazil,” he added.

It is worth noting that the prices of agricultural products are rising in Brazil, pressured among other factors by the rise in the dollar. In the case of soybeans, the country shipped significant volumes in recent months and inventories are relatively low, as can be seen in the graph below:

Brazilian Soy Exports (HS 1201) | Jan 2017 to Jun 2020 | WTMT

Source: DataLiner (To request a DataLiner demo click here)

Source: Reuters

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