Commodities

Brazil to discuss eliminating tariffs on corn and soy, source says

Credit: REUTERS/UESLEI MARCELINO

The Brazilian government is set to discuss on Friday a proposal that would temporarily eliminate tariffs on corn and soy imports from countries outside the Mercosur trade block, a source with direct knowledge of the matter told Reuters.

By Rodrigo Viga Gaier

RIO DE JANEIRO, Oct 15 (Reuters) - The Brazilian government is set to discuss on Friday a proposal that would temporarily eliminate tariffs on corn and soy imports from countries outside the Mercosur trade block, a source with direct knowledge of the matter told Reuters.

The matter will be decided during a meeting of Gecex, a technical body within the Economy Ministry, said the source, who requested anonymity to discuss confidential matters.

The possible tariff exemption comes amid record high prices for both grains in Brazil, squeezing Brazilians whose incomes have already been hit hard by the coronavirus pandemic.

The Economy Ministry confirmed there would be a Gecex meeting on Friday, but otherwise declined to comment. Brazil's Agriculture Ministry also declined to comment.

Brazil's Economy Ministry decided in early September to cut tariffs on rice imports to zero through the end of the year, amid record high prices for that grain.

The levy on corn and soy imports from outside Mercosur, which includes Paraguay, Uruguay and Argentina, is currently 8%.

(Reporting by Rodrigo Viga Gaier; Writing by Gram Slattery; Editing by Sam Holmes)

((gram.slattery@thomsonreuters.com; +55-11-95057-1453))

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