Brazil eliminates rice tariffs as a message to Mercosur, how does it affect Uruguay?

Published May 25, 2024

Tridge summary

Brazil has abolished tariffs on rice imports to ensure domestic supply after flooding impacted rice-growing areas. The tariff exemption applies to both Mercosur and non-Mercosur countries, aiming to prevent price speculation and stabilize the market. This could affect Uruguyan rice producers, who were expecting increased demand after a good harvest following drought and reduced global supply due to Brazilian flooding. Despite potential challenges, Uruguyan rice growers remain optimistic about the historically high yield of this harvest and the opportunity to compete in the expanded market.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Brazil announced that it will eliminate tariffs on rice to guarantee the domestic supply of this product after the terrible floods it suffers affected, above all, the main rice-growing state of Rio Grande do Sul. The measure was taken as a strong message to its partners in the Mercosur, how does this affect Uruguay? The government headed by Luiz Inácio Lula da Silva temporarily eliminated tariffs on rice imports, a measure that, until now, only reached Mercosur partner countries. In this way, purchases of cereal from the rest of the world will also be tax-free, with the aim of avoiding problems of shortages or an increase in the price of the product in the Brazilian domestic market. A message for Mercosur The provision published in the official gazette on Tuesday not only responds to a need—or forecast—regarding rice supply in Brazil, but also a clear message to Uruguay, Argentina and Paraguay that the same Minister of Agriculture of the northern country, Carlos Fávaro, put in ...
Source: Agromeat
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