The reduction will last until the end of 2022, according to a joint statement from the Ministry of Economy and the Ministry of Foreign Affairs, which added that it was an exceptional move within the Mercosur rules.
Earlier on Friday, the Minister of Economy, Paulo Guedes said that he expected Mercosur to announce the same reduction for the group’s common external tariff in the coming days. Brazil’s preventive measure may add pressure on other Mercorsur members to follow suit.
“Brazil remains fully committed to the ongoing negotiations in Mercosur”, According to the statement, which adds that the 10% reduction “follows the parameters already agreed with some of the Mercosur partners in the negotiations” regarding the common external tariff.
Members of Mercosur, a common market made up of Argentina, Brazil, Paraguay and Uruguay, have discussed for years a tariff reduction to help increase trade between the bloc countries and the rest of the world.
Last month, Argentina and Brazil agreed on a framework to reduce the tariff.
Inflation in Brazil has soared to double digits this year, driven in part by a weaker currency that drives up the cost of imports, creating a political headache for President Jair Bolsonaro ahead of next year’s elections.
In a statement, the Brazilian government said that the reduction had been made under a Mercosur provision that allows “the possibility of adopting measures destined to protect the life and health of the people”.
Source From: Ambito
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