Maputo – Brazilian businessmen, whose sectors may be affected by a surcharge on 222 products imported from the United States celebrated yesterday (10), in the capital of Mozambique, the initiative adopted as retaliation against illegal subsidies granted by the North American government to cotton producers. The businessmen are on a trade delegation to the south of Africa.
To some of them, the initiative should operate as stimulation, whereas others said there would be no expressive impact on the national market, as several of the products already suffer with high import fees. To businessman Luís Cusin, from spa chain Kurotel, the Brazilian government’s decision should initially result in positive effects in his area of operation. “Initially it should be positive. I see no problem and I believe that it will open more space for national products,” he said.
On Monday (9th), the Foreign Trade Board (Camex) published the list of 22 products imported from the United States. The objective is to place surcharges on 222 products in retaliation to the US subsidies to local production of cotton. The idea is to include fabric, electronic products, vehicles, hospital products, fruit, fish, food complements, cosmetics and combed cotton, among other products.
Businesswoman Bianca Stumpf Linck, from Brastex, who produces floor cloths and pharmaceutical cotton, praised the Brazilian government’s decision. “I believe that this should generate incentives to national production. Initially, it should work as a stimulus to my area, textiles and cotton,” said Bianca.
Some sectors believe that the effects should not be very great. “The impact is small, as imports of products in these sectors from the United States are currently low,” stated the vice president of the Brazilian Supermarket Association (Abras), João Batista Lohn, who is in the delegation organized by the Ministry of Development, Industry and Foreign Trade.
According to Brazilian specialists, the North Americans did not comply with the World Trade Operation’s regulations. In August the organisation authorised Brazil to apply sanctions to the United States in answer to the North American refusal to eliminate cotton subsidies.
*Translated by Mark Ament
