The Brazilian government has responded to the US’s move to slap a 50 per cent tariff on Brazilian produce by facilitating direct purchases for use in public schools and hospitals
The administration of Brazilian president Lula da Silva has announced the authorisation of direct purchases by Brazilian states and municipalities of foods hit by a massive 50 per cent tariff to enter the US market, according to a report in national daily Estadão.
Food products on the list, including mangoes, grapes, açai, nuts and juices, as well as fish, could be diverted from export and used instead for public school meals in states and municipalities interested in purchasing them. The food could also be supplied to hospitals and the Armed Forces.
The regulation was reportedly published in an interministerial ordinance from the Ministry of Agrarian Development and Family Farming and the Ministry of Agriculture on 22 August.
It authorises the purchase by the Union, states and municipalities of foodstuffs that were no longer exported due to the imposition of additional tariffs by the US.
To qualify, exporters will have to submit a declaration of loss upon export of the product and produce at least one declaration of export to the US of the product targeted by the exceptional purchase, starting from January 2023.
