Brazil and Argentina sign agreement to reduce Mercosur tariff by 10%; Guedes celebrates success – Prime Time Zone

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Common External Tariff is applied to most products from countries outside the bloc that includes South American countries

Isaac Nobrega/PRAgreement between the two countries was sealed this Friday, 8th, after a meeting with representatives of the nations

O Minister of Economics, Paulo Guedes, celebrated the agreement signed between Brazil e Argentina to reduce the Common External Tariff of the Mercosur, which is applied to products coming from countries outside the bloc. “It was a very important day for our international cooperation agreements,” said the Minister of Economy in a speech at the Ministry’s headquarters, right after the meeting with the Argentines. Originally, Brazil wanted a 20% reduction in the tariff, but began to accept a 10% cut this year and another 10% in 2022. The minister even suggested that Argentina could stay out of agreement, once the country he was against negotiating for the delicate situation of his economy. Guedes also said that the agreement provides for business meetings every 60 days to expand integration into Mercosur and assessed that the agreement comes at a good time. “Inflation is starting to rise in Brazil and we want to reduce import tariffs. It is the ideal time to expand the offer”, he said.

*With information from Estadão Content