Possible tax changes on low-value imports worry Brazil’s cotton and textile sectors

Possible tax changes applied to international shipments of up to $50 has raised concerns among organizations linked to the cotton sector, which warn of a greater influx of imported textile products into Brazil and mounting pressure on domestic industry. In a statement released on April 7, the Brazilian Cotton Producers Association, or Abrapa, and the National Association of Cotton Exporters, or ANEA, said any reduction or elimination of the levy could undermine the competitiveness of Brazil’s textile chain.

According to the groups, the debate over taxation of international small parcels is tied not only to the competitive environment, but also to broader economic, environmental and social effects. The two associations’ position aligns with statements already made by the Brazilian Textile and Apparel Industry Association, or Abit, and the Brazilian Textile Retail Association, or ABVTEX.

Imports gain ground

Abrapa and ANEA said the rise in imports has been reshaping Brazil’s textile market. According to the figures cited in the statement, textile sector imports increased from about 1.1 million tonnes in 2015 to more than 2 million tonnes in 2024, considering fibers, yarns, fabrics and apparel. Of that total, about 94% corresponds to synthetic and artificial fibers, while cotton and other natural fibers account for less than 6%.

In the associations’ view, that trend helps explain the change in textile consumption patterns in Brazil. The share of natural fibers in finished products consumed in the country fell from 42% to 27%, while consumption of synthetic fibers rose nearly 70%, driven mainly by imports.

Datamar data shows that between January and February 2026, Brazil imported 38 TEUs of cotton, up 372.9% from the same period a year earlier. The chart below provides a closer look at this trend.

Cotton Imports | Jan 2023 – Feb 2026 | TEUs

Source: DataLiner (click here to request a demo)

Debate over small-parcel taxation also involves the environment

The statement argues that the debate over the taxation of international small parcels must also take environmental impacts into account. According to the associations, Brazil imported about 3.3 million tonnes of plastic resins in 2025, an input used in the production of synthetic fibers widely associated with the fast-fashion model. Abrapa and ANEA argue that expanding this flow tends to increase the generation of persistent waste and microplastics.

The text also cites an estimate that about 35% of the microplastics present in the oceans originate from synthetic textiles. The associations also refer to recent studies pointing to possible risks to human health linked to the presence of microplastics in the body, including associations with inflammatory processes, cardiovascular disease and impacts on the immune and endocrine systems.

Pressure on jobs and value added

On the economic and social front, Abrapa and ANEA said changes to the taxation of international small parcels could put pressure on Brazil’s domestic textile industry and reduce the value added captured by Brazilian cotton. According to the statement, the cotton-textile complex accounts for about 1.3 million formal jobs and 8 million indirect jobs in the country, with roughly 60% of those positions held by women.

The associations argue that the issue should be addressed with a long-term perspective, taking into account its effects on the economy, productive structure, jobs and the sustainability of the chain. In the view of Abrapa and ANEA, preserving balanced competitive conditions is essential to strengthen domestic industry and avoid further distortions in the market.

Source: Abrapa

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