The government’s recent statement about zeroing food import tax will not bring effective benefits to the Brazilian consumer, according to Antonio da Luz, chief economist of the Rio Grande do Sul State Agriculture Federation.
In an interview with the program WW This Thursday (6), the expert explained the reasons why this measure will not be effective.
According to Luz, the current problem is not supply but demand. “We have no offer inflation, that is, there is no lack of product in Brazil,” said the economist.
He argued that the country is one of the world’s largest producers and exporters of various foods, sugar, beef and chicken.
Brazil: Leader in Food Production and Export
The expert highlighted Brazil’s leadership position in the global food market: “We are the world’s largest sugar producer. We are the world’s largest exporter. Half of all the ships in the world that are currently carrying sugar left Brazil. ”
Da Luz also mentioned other products in which the country stands out: “We are the second largest producer of chicken meat and is the largest exporter of chicken meat in the world, 35% is our share. We are the second largest producer and the largest beef exporter in the world. ”
Criticism of the government’s economic policy
The economist criticized the, arguing that the problem originates in excessive public spending. “We have a larger nominal deficit than what we had in the time of the pandemic, but without pandemic,” he explained.
Da Luz concluded that it is an attempt to create a political narrative for an economic problem that, according to him, was caused by the current administration itself.
“The government now seeks political alternatives to try to give a narrative to a problem that he himself caused from his public spending,” said the economist.
