Brazil to seek 20% reduction in Mercosur's common external tariff

25 May '21

1 min read

Pic: Shutterstock

At the extraordinary meeting of the four founding members—Argentina, Brazil, Paraguay, and Uruguay—of Mercosur this June, Brail is going to seek a 20 per cent reduction in the South American trade block's Common External Tariff, TEC. Brazil wants TEC to be reduced in two rounds—10 per cent immediately, and the other 10 per cent in December.

At present, Mercosur’s tariffs are relatively high by world standards. It is 35 per cent for textiles and clothing, and 32 per cent for footwear. A consensus is needed to reduce these tariffs, according to Mercosur rules that date back to early 1990s.

There are around 10,300 nomenclature products, and Brazil wants the reduction to apply to all, Brazilian media reports said quoting Lucas Ferraz, foreign trade secretary of the Brazilian ministry of economy.

On the other hand, the Argentine government is willing to reduce or eliminate tariffs on only 4,000 items, the same reports said.

ALCHEMPro News Desk (RKS)

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