Montevideo – Presidents of the four Mercosur member countries (Brazil, Argentina, Uruguay and Paraguay) have decided on the adoption of a new mechanism to shield the region’s market from being flooded with foreign products amidst the ongoing international crisis. From now on, each of the bloc’s countries will be allowed to raise the import tariff on 200 different products by up to 35%. The raises may remain in effect until 2014.
Presently, all of the Mercosur member countries are obliged to charge the Common External Tariff (TEC) on imports from third-party countries. A few exceptions were made for more critical items. In the case of Brazil, the list included 100 products. The Brazilian minister of Finance, Guido Mantega, requested permission to raise the tariffs on another 100 products. Argentina, however, wanted a larger 200-item list which ended up being approved.
The mechanism works as follows: each country submits a list of products whose imports it wishes to curb. The Mercosur member countries are consulted and the reply must be given swiftly, within a few weeks. According to Guido Mantega, in the case of Brazil, the list should include capital goods, textiles and chemicals.
The Brazilian president, Dilma Rousseff, is attending the meeting and was received this Tuesday (20th) by the president of Uruguay, José Mujica.
*Translated by Gabriel Pomerancblum
