In a move to contain inflation ahead of this year's Oct. 2 elections, Brazil's Chamber of Foreign Trade decided to cut down the Mercosur Common External Tariff (TEC) by 10% on items such as beans, meat, pasta, cookies, rice, and construction materials, the Ministry of Economy announced.
Argentina's Foreign Minister Santiago Cafiero Tuesday in Buenos Aires with his Uruguayan counterpart Francisco Bustillo to discuss a 33% increase in bilateral trade, among other issues.
In a move aimed at curbing inflation, Brazil Friday announced a 10% reduction of import tariffs on 87% of goods and services until December 31, 2022. Economy Minister Paulo Guedes now expects the other Mercosur countries to do the same.
Uruguay is attending the Mercosur summit in Brazil hoping the group implements deep changes, particularly referred to the free circulation of goods, services and production factors, and considers a six month period should be sufficient trial for the changes to become effective.
Venezuela dispatched on Friday a shipment of 14.000 tons of urea for Brazil and Uruguay, the first since becoming a full member of Mercosur, reported the official Venezuelan news agency.
Brazil raised to the maximum the common external tariff, AEC, that Mercosur charges on imported goods from out of the zone. The decree was published in Monday’s edition of the Official Gazette and includes a hundred goods.
Mercosur coordinators are holding meetings in Montevideo to decide on a mechanism for temporary increases of national tariffs besides those already implemented under the common external tariff for the group.
Argentina proposed the gradual elimination of the Mercosur Common External Tariff, AEC, double charge and hopes the initiative will receive a first approval before Buenos Aires has to turn over the rotating chair of the trade group to Brazil next August.