Imported Textiles from Brazil

Brazilian Finance Minister Guido Mantega recently revealed that in response to unfair competition from foreign cheap textiles, Brazil is about to change the taxation system for imported textiles, that is, from the current implementation of ad valorem taxation to taxation.

From the taxation of goods, fixed tariffs are imposed on specific products. In addition, Brazil has promulgated a series of measures to protect its manufacturing industry, including reducing local manufacturing tax revenues and imposing high tariffs on imported cars.

Guido Mantega also said that measures to levy taxes on imported textiles will be implemented three months later. This measure will help protect the development of the domestic textile industry and increase employment. At present, the government has prepared relevant legislation and will apply to the World Trade Organization to obtain a temporary protective measure for a period of ten years.

According to Feherho, president of the Brazilian Textile Industry Association, this measure will help curb unfair competition. In 2011, Brazil’s textile industry lost 15,000 jobs. This situation will not happen again.

In addition, Guido Mantega also revealed that related protection measures may also be applied to other industries, but it does not clearly indicate which industries and when.