Brazil increases import tariffs, affecting Ningbo
- Details
- Category: Ningbo Business
- Published: Tuesday, 25 September 2012 15:14
Brazil has decided to increase the import tariffs it imposes on hundreds of products, the Foreign Trade Commission of Brazil said on September 6. The change is meant to encourage Brazilian companies to make similar products amid the current global economic troubles. The new measure might affect Ningbo's exportation to Brazil.
According to the new measures, the import taxes Brazil imposes on tiles will increase from 15 percent to 35 percent, on bicycles from 20 percent to 35 percent, on air conditioners from 18 percent to 35 percent, and on bicycles and car tires 16 percent to 25 percent.
The substantial increase of tariffs was a surprise to most industry insiders. An even larger tariff hike is on mineral oil, which increases from 4 percent to 25percent.
Inspection and quarantine experts pointed out that major target of Brazil's tariff hike is China. The new measures will also have a direct impact on other Chinese-made products including automobiles, tires, glass, pharmaceutical, mechanical and electrical products, and footwear. China may be the biggest victim of Brazil's protectionism.
In addition, Brazil will also implement anti-dumping sanctions on carbon steel pipe imported from China.
Brazil's move is affecting many exporters in Ningbo, who have seen rising exporting volume to Brazil in recent years.
Statistics from Ningbo Inspection and Quarantine Bureau show, there are more than 1,000 Ningbo exporters to Brazil, exporting 6,977 batches of products from January to August, worth $ 276 million, an increase of 20.27 percent and 11. 73 percent over the same period last year.
Ningbo mainly exports products like automobiles, bike accessories, lamps, small home appliances, and clothing to Brazil. The exportation of agricultural products, chemical industry, machinery and equipment is relatively small.
An owner of a local exporting company said the heavy tariff increases means a price hike of their products, which inevitably hurts the competitiveness in price.
Inspection and quarantine experts pointed out that the enterprises should make efforts to optimize the structure of foreign trade and increase their reputation when carrying out the "go global" strategy.
