The Brazilian Ministry of Economy announced a 10% reduction in import tariffs on commodities such as beans, meat, pasta, biscuits, rice and construction materials. The policy covers 87% of all categories of imported goods in Brazil, involving a total of 6,195 items, and is valid from June 1 this year to December 31, 2023.

This is the second time since November last year that the Brazilian government has announced a 10% reduction in tariffs on such goods. Data from the Brazilian Ministry of Economy shows that through two adjustments, import tariffs on the above-mentioned goods will be reduced by 20%, or directly reduced to zero tariffs.

The head of Brazil’s foreign trade agency, Lucas Ferraz, believes that this round of tax cuts is expected to reduce prices by an average of 0.5 to 1 percent. Ferraz also revealed that the Brazilian government is negotiating with the other three members of the Mercosur, including Argentina, Uruguay and Paraguay, to reach a permanent tax reduction agreement on such commodities among the Mercosur member countries in 2022.

Since the beginning of this year, domestic inflation in Brazil has remained high, with the inflation rate reaching 1.06% in April, the highest since 1996. In order to ease inflationary pressures, the Brazilian government has repeatedly announced tariff reductions and exemptions to expand imports and stimulate its own economic development.

Precise Data:

● Frozen boneless beef: from 10.8% to zero

● Chicken: from 9% to zero

● Wheat flour: from 10.8% to zero

● Wheat: from 9% to zero Biscuits: from 16.2% to zero

● Other bakery and confectionary products: from 16.2% to zero

● CA50 rebar: from 10.8% to 4%

● CA60 rebar: from 10.8% to 4%

● Sulfuric acid: from 3.6% to zero

● Zinc for technical use (fungicide): from 12.6% to 4%

● Corn kernels: from 7.2% to zero