Brazil's government has decided to increase import duties to protect the domestic steel industry. According to the Chamber of Foreign Trade, duties on imports exceeding quotas on certain steel products will increase to 25% from the current rates of 9% to 14.4%.
This was decided after the local market was threatened by cheap steel products, especially from China. In 2023, imports of the 11 steel products mentioned in the decision increased by 30% compared to previous years, making local producers' competitiveness weak for some time.
Approval from South American trade bloc Mercosur partners Argentina, Paraguay and Uruguay is needed for the new tariffs to take effect. The Brazilian Revenue Administration is also expected to publish a regulation to regulate these quotas and the regulations are expected to be valid for 12 months.
Brazilian government stated that these measures will not negatively affect consumer prices and the production chain. However, it is aiming to increase capacity utilization in the local steel industry by closely monitoring market conditions over the next 12 months.
Among the steel products that will be affected in this context are the types used especially for oil and gas pipelines.
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