BRAZIL CONSULTS TARIFF INCREASE WITH MERCOSUR

Brasilia, September 7 (PL)- Brazil is consulting today its partners within the Southern Common market (MERCOSUR) about the decision of the Council of Ministers of the Foreign Trade Chamber to increase import tariffs to 100 items to protect local industry.

According to Minister of Development, Industry and Foreign Trade, Fernando Pimentel, the other members of MERCOSUR (Argentina, Uruguay, Venezuela and Paraguay--currently suspended) have 15 days to express themselves about the 100 items, whose tariffs are to be increased up to 25 percent.

Pimentel said that after the abovementioned deadline, the agreement of the Council of Ministers will come into force by September 25, as agreed on during a meeting of the Council of Ministers held in this capital on Sep. 4.

A note posted on the website of the Ministry quoted Pimentel as saying that the decision to increase the tariffs is in line with regulations of the World Trade Organization (WTO).

He said agreements signed by Brazil with the WTO allow the country to increase import tariffs up to 35 percent to most manufactured products and up to 55 percent to agricultural products.

Brazilian Finance Minister Guido Mantega said the measure helps encourage national production and added that the government will monitor prices of those items in the local market in order to prevent inflation.

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