Brazil reactivates mozzarella import taxes

The Brazilian government reversed its decision to withdraw the import taxes levied on the purchases of mozzarella cheese from outside Mercosur after nearly two months of fierce lobbying from the dairy industry and the Confederation of Agriculture and Livestock of Brazil (CNA). On the 12th, the decision to restore the 28% tax on mozzarella imported from the United States and Europe was published in Brazil’s Official Gazette.

The rate was zeroed on March 21 by the Executive Management Committee of the Chamber of Foreign Commerce (Gecex/Camex) to contain inflationary pressures in Brazil. However, the government claimed that there were no significant imports of the product.

According to the president of the Brazilian Association of Cheese Industries (Abiq), Fábio Scarcelli, from January to April 2021, Brazil imported 4,775 tonnes of cheese. This year, desíte no tariffs being levied on imports in part of this period, purchases dropped to 2,273 tonnes. “The measure was innocuous to contain inflation and only harmed Brazilian producers and industry. Brazilian consumers are more cautious, researching more and more before any purchase.”

According to Abiq’s director, the import taxes are now back, thanks to the efforts of representatives of the entire production chain to convince the authorities that this exemption would severely harm future Brazilian mozzarella production as surplus European cheese would enter the Brazilian market at any price during the summer season.

Source: Revista Globo Rural

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