The Government of Brazil, the largest economy in Latin America, has announced a set of measures aimed at reducing food prices. Among these measures is the elimination of import tariffs on products such as meat, coffee, sugar, corn, and olive oil. Brazilian Vice President and Minister of Industry, Services, and Foreign Trade, Geraldo Alckmin, stated at a press conference: "The Government is giving up tax revenue in favor of reducing food prices."
This initiative was proposed earlier this year by President Luiz Inácio Lula da Silva as part of the fight against inflation. Alckmin's announcement came after a meeting between Lula da Silva, ministers, and businessmen from the food and supermarket sector at the Palácio do Planalto, the seat of the Government. Alckmin assured that local producers will not be harmed by the importation of products and that the focus of the measure is on consumers.
According to Alckmin, tariffs on meat, coffee, sugar, and corn will be reduced to zero. These tariffs currently range from 7.2% to 14%. The measure will come into effect in the coming days, and among the new regulations announced is the expansion of local suppliers of the Brazilian System of Inspection of Animal Origin Products, which will allow the marketing of products such as milk, honey, eggs, and meat throughout the country.
Another important measure is prioritizing in the 2025 agricultural plan the production of foods that are part of the basic basket, with greater incentives for rural producers supplying the internal market of Brazil. Additionally, the Government aims to increase public food reserves in the National Supply Company (Conab) to regulate stocks during critical price or supply moments.
In 2024, Brazil's official inflation index exceeded the 4.5% set by the Central Bank, with a growth of 7.69% in the food and beverage sector.
