Austrade yesterday issued a release titled Insight – Brazil reduces tariffs on over 6,000 goods. They advise that the Executive Committee of the Brazilian Foreign Trade Chamber (GECEX) has issued Resolution No. 353 reducing tariffs on 6,190 products arriving there from 01 June 2022. Reductions will be in place for 18 months until 31 December 2023.
We continue to bring you reports on trade opportunities as new markets open up to Australia.
The tariff reductions cover a wide range of commodities, including most agricultural, forestry and fisheries products (AFF). Fast rising food and beverage prices are contributing to inflation in Brazil.
Implications for Australian exporters
The tariff reductions make Australian products cheaper to import, increasing their competitiveness relative to products made domestically and regionally.
Exporters should continue to monitor for further tariff reduction announcements by the Brazilian Government. They are advised to consider working with Austrade and Brazilian importers to identify export opportunities. Furthermore, to pursue market access for commodities, exporters may contact the Department of Agriculture, Water and the Environment (DAWE).
Market profile
Brazil is a complex market to operate in but presents a set of opportunities for Australian companies in all sectors given its exceptional natural resource base, sophisticated industry and services sectors, large population (208.3 million), economic weight (the world’s ninth largest economy) and a growing middle class.
Brazil makes cars, trucks, planes, ships, satellites, offshore oil platforms, white goods, fashion goods, cosmetics and consumer electronic products. It has a large and internationally competitive agribusiness sector, massive oil and gas reserves, vast mineral resources and a sophisticated financial services sector. It is also one of the world’s most popular tourist destinations. The sheer size of the Brazilian economy offers many trade opportunities for Australian suppliers, particularly in-market niches that depend on innovation, research, education skills and services.
Australian exports to Brazil have risen steadily in recent years. Exports have grown 221.7% from $21.2 million in 2016 to $68.2 million 2021. An increase in unroasted malt exports since 2019 was behind this growth.
As the two major economies located in the tropics, Australia and Brazil face some common challenges and opportunities. Australia and Brazil continue to develop a partnership for global leadership in tropical products and services such as agriculture (including bio-security), health and infrastructure, providing trade, investment and education opportunities for both countries.
Business tips
When negotiating with Brazilian business people, be aware that they usually think in terms of US dollars.
It is important to keep in mind that personal contacts play an important role in Brazil and can make the difference in doing business deals.
Although many Brazilians speak English, some may feel more comfortable in business meetings if an interpreter is present.
The Austrade office in São Paulo recommends that you are accompanied to business meetings by a local contact and that all initial written correspondence with potential business partners be in Portuguese or in English. (Avoid using Spanish as a substitute for Portuguese).
Austrade offers more insights on their Export Business website.
For professional advice about international trade to all countries, including Brazil, please contact us here at Colless Young. As licensed Customs Brokers and International Freight Forwarders, we handle all your transport needs, by air and sea, both import and export. We are based in Brisbane and offer a complete range of logistics services through all Australian ports and airports.
