Chinese wet blue tax could be a bonus for Brazil
While many in the industry have voiced concerns over China’s decision to impose a tax on the imports of wet blue in an attempt to control pollution, as they believe it could negatively affect business, Brazilian manufacturers are viewing the move as positive.
Tanners in the South American country are certain that the decision to tax wet blue hides can only benefit its own domestic industry as demand for added-value crust and finished leather will rise, resulting in higher profits for its producers.
"China faces difficulties to produce finished leather because of environmental reasons and the unavailability of qualified labour. They have the demand but not the capacity to produce goods so they will have to import both crust and finished leather and that is when Brazil will increase its share of that particular market niche," said Vilmar Trevisan, sales manager of Fritsch & Cia tannery.
Already the largest supplier of leather to Asia, Brazil now plans to intensify its exports of crust and finished leather to the region and hopes to now achieve turnover of $2.8 billion in 2008.
