Mercosur approves 10% reduction in import tariffs

The Mercosur countries agreed to reduce the Common External Tariff (CET) rate by 10%. This tax is levied on most goods imported from other nations outside the South American bloc and varies by product.

The measure was announced this Wednesday (20) during the ordinary meeting of the Common Market Council, an event that preceded the 60th Summit of Heads of State of Mercosur and Associated States, which took place t in Asunción.

When announcing the joint decision, the Minister of Foreign Affairs of Paraguay, Júlio César Arriola, said the measure could help “improve competitiveness” of the bloc member countries and “access, in better conditions, of our productive sectors to inputs and capital goods.”

In a note released today, the Ministries of Economy and Foreign Affairs of Brazil detailed the 10% reduction applies to “most of the tariff universe, subject to the already existing exceptions in the bloc.” Under Mercosur rules, each member country can elect up to a pre-agreed limit of products for which the joint tariff rules do not apply.

“The understanding takes into account the dissimilar needs of the member countries, demonstrating Mercosur’s ability to move forward with a constructive vocation towards updating and adapting its tariff structure to the current conditions of regional and global trade in a balanced way concerning the productive capacities of the bloc,” explained the Brazilian Ministry of Economy. The measure applies to about 80% of the tariff scope and brings the levels practiced by Brazil and other bloc members closer to the average international rates.

“This is a crucial step to increase the competitiveness of the bloc’s countries and strengthen regional production processes to promote a beneficial insertion of Mercosur production in global value chains,” said the ministry.

Also at the 60th Ordinary Meeting, the Common Market Council announced the conclusion of the negotiation process to sign a free trade agreement between Mercosur and Singapore.

In addition to Argentina, Brazil, Paraguay, and Uruguay, the South American bloc includes Venezuela, although the country has been suspended since 2007. Bolivia, Chile, Colombia, Ecuador, Guyana, Peru, and Suriname are considered associated states of Mercosur.

Source: ANBA

To read the full original article, please go to: https://anba.com.br/en/mercosur-approves-10-reduction-in-import-tariffs/

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