Brazil's crop protection industry is divided over a request to raise import tariffs on formulated pesticides from zero to 35%, after the country's main farm-input advisory committee recommended against it and one formulator quit the leading trade association in protest, Global Agriculture reports.
In October Sindiveg, the national union of the plant defence products industry, asked the Foreign Trade Chamber, Camex, to raise the duty on formulated herbicides, fungicides and insecticides widely used on soybeans, including products based on 2,4-D and glufosinate. Abifina, which represents the fine chemicals industry, asked separately for an 8 to 10% tariff on four products for 12 months. Sindiveg and Abifina say the measures respond to a rising share of Chinese generics in Brazil's pesticide imports.
Tecnomyl Brasil, a formulator of chemical and biological products, said it will leave Sindiveg next year because it was not consulted before the request was filed. It said it opposes protectionist measures that raise costs, restrict competition and narrow farmers' choice, and warned they could add to food price inflation.
On 6 November most members of the agriculture ministry's thematic committee on farm inputs voted to tell Camex they oppose the increase. Aprosoja, the National Confederation of Agriculture (CNA), Abrapa, Aenda, Andav, the Brazilian Rural Society and Sindag voted against; Sindiveg, Abifina, Unifito and Anpii Bio voted in favour. Committee chair Roberto Levrero said the sector should focus on incentives rather than taxes. Aenda, which represents generic importers, has asked for the 7.2% duty on insecticides in packs of up to 7.5 kg to be cut to zero.
The competing requests went to Camex's Tariff Alteration Committee on 10 November. Soy, corn and cotton growers warn that any increase would raise production costs at a time when many farmers are already under financial strain.
Photo: James Martins / Wikimedia Commons (CC BY 3.0)
Source: Global Agriculture
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