Brazil and Argentina raise tariffs on textiles and garments at the same time

by:JIYALI     2021-08-01
In order to protect its domestic textile industry, Brazil has substantially increased the import tariff rate of textiles and clothing since the end of last month to curb the surge in imports of textiles and clothing from China and other countries. In addition, due to the strong appreciation of the Brazilian currency real against the US dollar in the past few months, it has won the Southern Commons Market member states agreed to increase the import tariffs of Brazil, while Argentina also increased the import tariffs on textiles and clothing, but Uruguay and Paraguay did not take the same protective measures. In response to the request of its domestic textile association, the Brazilian Textile Association (ABIT), Brazil has substantially increased the import tariff rate of textiles and garments since November 30, and has changed garments and textile products (HS63 chapter towels, carpets, bed sheets, etc.) The import tax rate of China has been increased from 20% to 35%, and the import tax rate of other textiles has been increased from 16 to 18% to 26%. This measure for Brazil was decided after months of consultations among the member states of the Mercosur (Argentina, Brazil, Paraguay and Uruguay). Paraguay and Uruguay opposed the adoption of this protective measure, and ultimately did not improve. Import tariffs on textiles and garments.     In addition, in order to curb the expected increase in Chinese textiles and clothing imports via Paraguay and Uruguay to Argentina and Brazil, Mercosur member countries have also implemented import monitoring on textiles and clothing.  Imports surged   Since the beginning of last year (2006), the Brazilian real currency has appreciated by 31% against the US dollar, causing the Brazilian textile and clothing industry to face a substantial increase in foreign goods imports.  According to official statistics, from January to October this year, Brazil’s imports of US dollar-denominated knitted garments (Chapter H.S.61) increased by 131% compared with two years ago. The surge in Brazilian imports partially reflects the appreciation of the Brazilian currency, as the price of knitted garments denominated in US dollars rose by 34%, resulting in an increase in the value of imports.   In the first eight months of this year, Brazil imported USD-denominated woven garments (H.S. 62) from abroad, an increase of 113% over the same period in 2005, while imports only increased by 8%. The import volume of cotton, cotton yarn and cotton cloth (HS52 chapter) also surged by 169%, the import volume of man-made fiber long fiber products (HS54 chapter) increased by 30%, and the import of man-made staple fiber and related products (HS55 chapter) The amount increased by 78%.   Among them, Chinese products have increased significantly in the Brazilian textile market. For example, the import volume of Chapter 52 products from China has tripled, while the import volume of Chapter 55 products has surged by as much as 688%.  The decision to increase import tariffs is an easy way to protect domestic industries against fierce competition from China, but it has also been condemned by the EU textile industry, which is seeking new markets.
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