After requesting a meeting with federal authorities over two months ago, the Brazilian steel institute (IABr) reported that it has not received an answer regarding the institute’s urgent suggestion that Brazil adopt a 25 percent import tax on certain steel products from China.
IABr has said that Brazil is importing such products at dumping prices, and the country should follow the same levels of import taxes as the US and EU. Currently, the average import tax for steel products is at 12 percent.
According to sources, the reluctance by the authorities to increase the import tax derives from the pressure by steel consuming sectors, which claim that the price of domestic steel products will increase soon after the import tax is increased, as the domestic price is based on the price of a similar imported product after clearing customs, usually increased by a premium of 10 to 15 percent.
The pressure against the higher import tax includes 16 associations representing the sectors of civil construction, automotive, machinery and equipment, domestic appliances, shipbuilding and railroad transportation.
According to the local press, the ministry of development, industry and trade (MDIC) informed that the request of IABr is under evaluation, but a date for the meeting is still to be fixed.
