S\u00e3o Paulo \u2013 A study by the Institute of Applied Economic Research (Ipea) shows that exchange depreciation in some countries, like China and the United States, may affect Brazil and cancel trade protection tariffs negotiated at the World Trade Organisation (WTO).<\/p>\n
\u201cTariffs, a basic instrument for trade protection, negotiated over decades, are cancelled by exchange rate disparities. Furthermore, exchange rate disparities directly affect the levels of concessions offered in negotiations and the levels of trade opening negotiated at the WTO,\u201d said the Ipea, in a study disclosed on Thursday (11), in the city of S\u00e3o Paulo.<\/p>\n
Ipea shows that exchange rate depreciation also serves as subsidies to the exports of these nations and as surcharges to their imports, becoming \u201cmuch more efficient trade barriers than the tariffs applied\u201d.<\/p>\n
The bottlenecks in the Doha Rounds, for example, according to the study, may be caused by exchange matters. \u201cThe WTO needs to face the question of exchange effects on the regulation system developed in recent decades. In the face of the current situation in the Doha Rounds, you may ask whether exchange matters are not behind the impasse faced.\u201d<\/p>\n
The study shows, for example, that depreciation of 30% in exchange rates in China represents a subsidy to exports and would bring damaging effects to Brazil. This depreciation would not just cancel tariffs consolidated by Brazil at the WTO, but would also make the tariffs applied into incentives to Chinese imports. "In synthesis, to Brazil, the appreciation of its currency practically cancels the tariff instrument and represents incentives to imports in general.\u201d<\/p>\n
*Translated by Mark Ament<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
The Economic Research Institute shows that depreciation of currencies like the US and Chinese cancel tariffs negotiated at the WTO and favour exports of these nations, harming others\u2019, like Brazil\u2019s.<\/p>\n","protected":false},"author":2315,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[],"class_list":{"0":"post-38967","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy"},"wps_subtitle":"The Economic Research Institute shows that depreciation of currencies like the US and Chinese cancel tariffs negotiated at the WTO and favour exports of these nations, harming others\u2019, like Brazil\u2019s.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/38967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2315"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=38967"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/38967\/revisions"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=38967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=38967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=38967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}