BRASILIA, Brazil—The Brazilian government has increased import tariffs for natural rubber in a bid to strengthen the trading position of local producers.
In an Aug. 15 news release, the Brazilian Ministry of Agriculture and Livestock said it is raising the NR tax rate to 10.8 percent from 3.2 percent for a period of 24 months. This is in response to "conjunctural difficulties" faced by rubber producers in Brazil, according to the ministry.
Domestic suppliers, it said, have lost competitiveness due to sharp decline in prices for NR imported from Southeast Asia.
The rubber industry "has returned to consuming more products here in Brazil, but it must buy from Brazilian producers," said Carlos Favaro, minister of agriculture and livestock.
Facaro said the increased tax on NR imports will "strengthen the producers, the production chain and the industry as well."
