Brasília – Starting next year, farmers in Africa may buy machinery, tractors and equipment from Brazil, with technical assistance, financed by the Bank of Brazil. The Foreign Trade Board (Camex) approved today (17) the concession of loans for the More Food program.
For 2011, the program forecasts the disbursement of US$ 240 million in new financing. In 2012, the limit should reach US$ 400 million. According to the executive secretary at Camex, Hélder Chaves, Ghana and Zimbabwe should be the first countries benefited, but loans may be granted to producers all over the African countries.
In the meeting today, the Camex also authorized the government to reduce the import tax levied on purchases from poor nations, mainly in Africa and Asia. The proposal is the result of a United Nations (UN) project to stimulate exports of countries with a low level of social and economic development.
With the new rule, Brazil may zero the import tax on specific products bought from these countries. But, before that, the proposal may be analysed by the Chief of Staff’s Office, to decide whether a bill or a provisory measure in this respect will be sent to Congress.
According to Chaves, in case any national project is harmed by cheaper imports, Brazil may establish safeguard measures. “If there is gross movement of imports, the Camex will take all necessary steps," he guaranteed.
Safeguards are temporary measures for commercial protection to imports of specific products, no matter what origin, and may only be applied in the period necessary to repair damages caused to local producers.
*Translated by Mark Ament
