Insight – Brazil reduces tariffs on over 6,000 goods

20 June 2022

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

Figure 1 - Australian AFF exports to Brazil 2016 to 2021

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.

For more information on the Brazilian market and doing business in Brazil visit the Austrade website.

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