Brazil: Abitrigo says that import tax suspension is positive and has a political component

Published 2022년 5월 12일

Tridge summary

The Brazilian government has temporarily removed tariffs on wheat and wheat flour imports until the end of December, a move welcomed by the Brazilian Wheat Industry Association (Abitrigo). The decision aims to help combat inflation by reducing the cost of importing wheat by 9%. However, the war in Ukraine could still drive up wheat prices. The tariff removal applies to products like wheat, crackers, biscuits, and bakery items, and is seen as a positive measure to control inflation.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Porto Alegre, May 12, 2022 – The executive president of the Brazilian Wheat Industry Association (Abitrigo), Rubens Barbosa, told Agência SAFRAS that the reduction to zero of the tariff on wheat and wheat flour imports until May 31 December was already expected and is positive for the industry. "We made an application to the ministry two or three weeks ago and that's what happened." Last Wednesday morning, Barbosa gave an exclusive interview to Agência SAFRAS, when he said he would contact the ministry to ask for a position. At the end of yesterday afternoon, in a new contact after the news of the suspension of the tax, the leader commented on the coincidence and said that he sees “a political component” in the measure. “President [Bolsonaro] is worried about inflation.” According to the executive president of Abitrigo, the government's concern with the increase in prices of wheat derivatives, which are important consumer products for the Brazilian population, is now “welcome”. ...

Source: Safras