Brazil Halt Tariffs on Corn and Soy Import until 2021

Brazil's Economic Ministry has announced a suspension of tariffs on corn and soy importation from countries outside the Mercosur trading bloc until early 2021.

 

This step is being taken so as to reduce food prices that are contributing to inflation in the country.

 

According to reports, Brazil’s economic ministry has already announced the suspension on 17 October and the decision to remove the tariffs temporarily was taken late on Friday 16 October at a meeting of Gecex, a technical body within the economy ministry.

 

The ministry in a statement said soybean meal and soy oil imports will also be excused along with soy imports until 15 January 2021, while corn imports will cease paying the tariffs until 31 March 2021.

 

"Both measures are aimed at containing high prices for food," The Ministry said.

 

Due to the high price of both grains, food prices have been affected resulting in inflation and draining the income of Brazilians as they yet look to recover from the huge hit caused by the coronavirus pandemic. The Inflation recorded in August hit its highest in four years for that month, driven by rising fuel and food costs.

 

Poultry and pork sector are also affected by the high price for soy and corn; both sectors requested last month that the government free up imports.

 

The tariff on corn and soy imports from outside Mercosur, which includes Paraguay, Uruguay and Argentina is currently 8 percent, and 6 percent for soy meal and 10 percent for soy oil.

 

The economy ministry decided in early September to eliminate tariffs on rice imports through the end of the year, amid a record of high prices for the grain.