Brazil: Cachaça producers celebrate Mercosur-European Union agreement but point out risks in tax reform

Published 2024년 12월 13일

Tridge summary

The Brazilian Cachaça Institute (IBRAC) is praising the Mercosur-European Union trade agreement, which will shield the Brazilian cachaça liquor with the name 'Cachaça' in the EU and slash tariffs, boosting its global competitiveness. However, IBRAC's president, Carlos Lima, expresses worry over Brazil's proposed tax reform, which could threaten the cachaça production chain despite international recognition and protection of the beverage. IBRAC is urging Senators to revise a bill that could diminish cachaça's competitiveness by favoring beer, arguing for a fairer tax system for all alcoholic beverages.

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Original content

The Brazilian Cachaça Institute (IBRAC), an entity that represents the cachaça sector in Brazil, celebrated the announcement of the trade agreement between Mercosur and the European Union, formalized last Friday (6). The agreement brings important advances for cachaça, including the recognition and protection of the name "Cachaça" in the European bloc, in addition to a tariff reduction that will increase the competitiveness of the drink in the international market. With the ratification of the agreement, the Brazilian distillate will be officially protected in the European Union, guaranteeing its recognition as a genuinely national product. Cachaça is already recognized and protected in countries such as Chile, Colombia, the United States and Mexico, and, with the new agreement, this protection will be expanded. IBRAC has been actively working to ensure the recognition of cachaça since 2014, when negotiations resumed with the aim of strengthening the image and rights of the ...

Source: Portal Do Agronegocio