Brazil extends 9% wet blue duty to Mercosur states

28/05/2001

Brazil has reacted decisively to the illegal routing of wet blue exports via other Mercosur countries, simply by bringing those countries within the remit of its original decree of last December, which applied a 9% duty on wet blue exports.

The move was prompted by the dramatic upsurge noted in wet blue exports to other Mercosur states since the duty was introduced – especially Uruguay and Paraguay. During January and February, exports of wet blue to the two countries soared by a massive 116% reaching 1.05 million units – the obvious inference being that most of these exports were ultimately destined for non-Mercosur states.

Effective from May 21, the resolution is valid until 30 November 2001.

Brazilian wet-blue exports 2000/2001

Country of destination US$ FOB Volume in Kg

Uruguay

2001 7,451,138 2,909,287

2000 746,514 272,120

Variation + 898% + 969%

Argentina

2001 767,485 186,790

2000 209,863 79,090

Variation +265,7% +136,1%

Paraguay