The Brazilian Chamber of Foreign Trade (CAMEX) has decided that the 7% export duty on wet blue will remain in force until December 2006.

The government has recognised the difficult times the footwear production chain is going through and decided to keep the duty in force for another 12 months," said Minister of Agricultural Development and Camex member, Miguel Rossetto. According to Mr Rossetto, the intended reduction of the duty to 4% would be detrimental to the sector, adding, "The 7% duty is keeping the balance, allowing tanners, exporters of wet blue, meat packers and farmers to operate smoothly."

Cezar Müller, president of the Association of Tanners of Rio Grande do Sul (AICSul) sees the continuation of the 7% duty as a victory, although he said that he would have preferred to see a return to the initial level of 9% duty. 

It is believed that the duty will no longer be zeroed by the end of 2007 as initially planned. Federal Deputy Tarcísio Zimmermann said, There is no indication that there may be any further reduction."