Brazil plans to reduce import tariffs by 10 percentage points during the new government’s four-year term, Economy Minister Paulo Guedes said, a move away from the direction currently being taken by countries such as the United States.
Guedes announced the average tariff reduction at an event in Rio de Janeiro, saying there will be a cut of 1 percentage point in the first year, 2 in the second, 3 in the third and 4 in the fourth.
“The opening of the economy has to be exponential or Brazilian industry will suffer,” he said. Import tax rates in Brazil are mostly between 10% and 35%.
Guedes’ comments come as global trade war fears are on the rise again after the United States imposed a new set of tariffs on Chinese goods and negotiators entered a second day of talks looking for an agreement.
Guedes did not elaborate further on the plan but reiterated the government’s desire to push ahead with its economic reform agenda of widespread tax cuts, privatization and deregulation.
Before any of that, however, Congress must approve pension reform. Guedes said political support for the government’s flagship economic policy is rising but dialog with lawmakers is proving problematic and the path to approval is still not clear.
The government’s proposals include raising the minimum retirement age and increasing workers’ pension contributions, a package it says will save the public purse 1.237 trillion reais (US$ 312 billion) over the next decade, boost investor sentiment and kick-start the economic recovery.
But public support for the bill is anything but stellar, as a poll published by the National Confederation of Industry showed earlier this week. Guedes said pension reform is vital to ensure Brazil’s economy does not go the same way as Argentina’s, which he said is now in a critical state.
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I wonder what Guedes really thinks of Trump's tariffs and borrowing? But it would hardly be diplomatic to say, if he does believe they're bad for America.May 14th, 2019 - 11:43 am 0
Hope he knows what he's doing, anyway. Reducing import tariffs is one of the things Macri did that lead Argentina's economy to it's current state...
@DemonTreeMay 14th, 2019 - 02:47 pm 0
REF: Reducing import tariffs
Unless it is bilateral + protects the local industries which can't grow fast enough to meet the local+overseas demands; it makes some sense!