Brazilian wet blue exports up
Brazilian wet blue exports keep growing after the reduction seen in the wet blue export duty from 9% to 7%, by the country's Chamber of Foreign Trade (CAMEX), a few months ago. The duty was created in December 2000 in order to slow down the export of raw material, guarantee domestic supply and encourage production of higher added value leather, namely crust and finished articles. But in December 2004, against the advice of most Brazilian tanners, CAMEX decided in favour of gradually reducing the duty until its complete elimination in 2006. This followed pressure by powerful cattle slaughterhouses and meat packers who operate wet blue tanneries and who are not at all worried with the resultant damage that will be caused to the local leather value chain. They take the view that they are in the business of producing beef and hides are just a by-product.
