Brazil: Cut in import tax on rice, beans and meat does not impact prices, experts say

Published 2022년 5월 30일

Tridge summary

A recent announcement by the government about a 10% reduction in import tariffs for rice, beans, and beef has been analyzed by experts and associations, who confirm that it is not expected to impact consumer prices. This is due to Brazil's self-sufficiency in beans and rice, and its dominant position in the global beef market. The tariff reduction, although aimed at combating inflation, may be seen as more political than economically significant, given the limited impact on import practices and the expectation of continuing price increases in beef. This situation underscores Brazil's domestic production strengths and the specific consumption preferences shaping its food market.

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

Original content

The new 10% reduction in import tariffs for rice, beans and beef, announced last Monday, will not affect consumer prices, say experts and associations consulted by the g1. In November last year, the government had already made a cut of the same magnitude, which resulted in a total decrease of 20% in import duties on more than 6,000 items by December 2023. Tariffs for three products had the following reductions : beans: from 10% to 8%; rice: from 12% and 10% to 9.6% and 8% – depending on the varieties; beef: from 12% and 10% to 9.6% and 8% – depending on the cuts. The reduction in rates is intended to combat the escalation of inflation, however, in addition to being small, the external supply of these foods is restricted at the moment and Brazil already has a production capable of supplying the domestic market, according to experts. For each food, the scenario is as follows: In the case of beans, Brazil has nowhere to import the carioca type – which is the most consumed and ...

Source: G1globo