Brazil sets import quota for 11 steel products
At least 11 imported steel products will be subject to import quotas. If the maximum volume is exceeded, the import duty, currently ranging from nine to 14.4 percent, will rise to 25 percent. The decision was made Tuesday (Apr. 23) by the Foreign Chamber of Commerce, of the Ministry of Development, Industry, Trade, and Services.
The measure should come into force in around 30 days, since Brazil’s partner countries in Mercosur—Argentina, Paraguay, and Uruguay—will have to consider it first. Brazil’s Revenue Service will also have to issue an ordinance regulating the quotas.
Valid for 12 months after its made official, the move aims to prevent unfair competition with domestic steel. In 2023, according to the ministry, the volume of imports of the 11 steel products exceeded the average imports between 2020 and 2022 by 30 percent. In recent months, Brazilian steelmakers have complained of an invasion of Chinese steel, which arrives in Brazil cheaper than domestic products.
Technical studies show that the quotas will have no impact on consumer prices or the production chain, the ministry reported.
“During these 12 months, the government will monitor market behavior. The government expects the decision should contribute to reducing idle capacity in the domestic steel industry,” the statement reads.
Among the 11 steel products listed by the chamber are certain types of flat-rolled iron or non-alloy steel products and tubes for oil and gas pipelines.
