Withdrawal of import tariffs for soybeans and corn in Brazil may contain food prices

Published 2020년 10월 18일

Tridge summary

The Brazilian government has decided to remove the import tariff on soybeans and corn until certain dates in 2021 in response to requests from the animal protein sector. This step is aimed at reducing rising production costs and food prices. The decision includes soybean grain, bran, oil, and corn, and could mitigate the impact of increasing corn and soybean prices on the production of animal protein and benefit consumers by reducing food prices. This comes during a period of record harvests for soybeans and corn in Brazil, despite the devaluation of the real leading to higher prices and export attractiveness.

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Original content

From the newsroom // AGROemDIA By zeroing the import tariff for soybeans and corn, the government is responding to requests from the animal protein sector to contain rising production costs and food prices. Recently, the Brazilian Animal Protein Association (ABPA) had requested the adoption of the measure to alleviate the upward pressure on the poultry and swine chains. A similar position was also expressed by the Brazilian Association of Milk Producers (Abraleite) together with the ministries of Agriculture and Economy. This Saturday the 17th, the Executive Management Committee (Gecex) of the Chamber of Foreign Trade (Camex) decided to zero the import tax rate for soybeans and corn. In the case of soybeans, the temporary reduction will be valid until January 15, 2021 and will cover NCMs 1201.90.00, 1507.10.00 and 2304.00.10, which refer, respectively, to soybean grain, bran and oil. “As for corn (NCM 1005.90.10), the product was included in the Brazilian List of Exceptions to the ...

Source: Agroemdia