Brazil reduces tariffs on over 6,000 goods
On 24 May 2022, the Executive Committee of the Brazilian Foreign Trade Chamber (GECEX) issued Resolution No. 353 (in Brazilian Portuguese).
The resolution reduced tariffs on over 6,190 goods arriving from 1 June 2022. Reductions will be in place for 18 months until 31 December 2023.
Resolution No. 353 is the latest in a series of tariff reductions (Resolution No. 269 and Resolution No. 341) by the Brazilian Government to combat rapidly rising inflation.
The tariff reductions cover a wide range of commodities, including most agricultural, forestry and fisheries products (AFF). Fast rising food and beverage prices are contributing to inflation in Brazil.
Implications for Australian exporters
The tariff reductions make Australian products cheaper to import, increasing their competitiveness relative to products made domestically and regionally.
Exporters should continue to monitor for further tariff reduction announcements by the Brazilian Government. They should also consider working with Austrade and Brazilian importers to identify export opportunities. To pursue market access for commodities, exporters should contact the Department of Agriculture, Water and the Environment.
Table 1: Selected tariffs on Brazilian AFF imports
Commodity | Market access | HS code | Tariff | Reduced tariff | Total Australian exports 2021 | Brazil imports 2021 |
|---|---|---|---|---|---|---|
Barley | No | 1003 | 10% | 8% | $2.7b | $187.2m |
Malt (roasted and unroasted) | Yes | 1107 | 14% | 11.2% | $499.7m | $924.5m |
Wheat1 | No | 1001.19 & 1001.99 | 10% | 0% | $9.2b | $2.7b |
Beef and veal | Yes | 0201 & 0202 | 10-12% | 9.6% to 8% | $9.1b | $363.2m |
Seafood | No | 03 | 10% | 8% | $1.2b | $1.5b |
Wine | Yes | 2204 & 2205 | 20% | 16% | $2.1b | $695.2m |
Dairy | Yes | 0401, 0403, 0405 & 0406 | 12-16% | 9.6-12.8% | $1.5b | $247.8m |
Meat meal for animal feed | No | 2301 | 6% | 4.8% | $199.9m | $18.0m |
Source: ABS, ComexStat, Gecex and UN Comtrade. Retrieved June 2022.
1 Under Resolution No. 341, tariffs on wheat are 0% until 31 December 2022. It remains unclear if Resolution No. 353 supersedes Resolution No 341. If Resolution No. 353 supersedes Resolution No. 341, the tariff on wheat will be 8%.
Australian AFF exports to Brazil
Brazil is a large agricultural exporter and one of Australia’s main competitors in many markets. However, Brazil is also a large agricultural importer. In 2021, Brazil imported $17.5 billion of AFF products.
Australian exports to Brazil have risen steadily in recent years. Exports have grown 221.7% from $21.2 million in 2016 to $68.2 million 2021. An increase in unroasted malt exports since 2019 (see Figure 1) was behind this growth.
Figure 1: Australian AFF exports to Brazil
Resources
The Australian Government’s network of Agriculture Counsellors provided information for this article. More information about the Agriculture Counsellor network, including contact details, is available on the Department of Agriculture, Water and the Environment website.
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