Plan, prepared by the Ministry of Finance, was delivered to the president on Wednesday (6) and offers from credit to the increase in government purchases
President Luiz Inacio da Silva meets with the vice president and Minister of Development, Industry, Commerce and Services, this Monday (11) at 17h. On the agenda will be the package of support measures to sectors affected by 50% tariffs imposed by the government of Brazilian products. Alckmin had said last week that the package would be released until this Tuesday (12). Alckmin would participate on Monday in the launch of the Export Qualification Program (Peiex) in São Paulo, but the event was postponed by the Brazilian Export and Investment Promotion Agency (Apexbrasil) because of the convening of the meeting at the Planalto Palace by Lula.
The package, prepared by the Ministry of Finance, was delivered to Lula on Wednesday (6). As showed the Estadãothe farm did a “broad” study to Munir Lula with several options on the table, even those not recommended by the folder. The plan offers from credit lines to supply the working capital of companies, as already announced by the Minister of Finance, and Vice President Alckmin, the increase in government purchases.
Since the announcement of the tariff, on July 9, companies linked to industry and agribusiness segments have been intensifying conversations with the government in search of protection measures. On the industrial side, the requests were delivered by the National Confederation of Industry (CNI) to the government. The list of demands, which initially contained 37 measures, was reduced to eight, considered priority. She contained requests for financing lines, job protection, faster return of tax credits and also anti -dumping measures, to prevent an imported flood, as well as encouraging new markets.
In conversation with the EstadãoCNI’s director of economics, Mário Sérgio Telles, said the government has information from companies to be able to make a targeted program and that most of the measures have no fiscal impact. “It is not for the whole industry; it is only for very affected companies. It is possible for the government to identify this in advance, because it knows how much each exports and the degree of dependence on the US market,” he said. “A lot has no tax cost, such as anti -dumping measures and credit return, for example,” he added.
At Agro, requests are basically focused on increasing government purchases, especially perishable items such as fruits, fish, honey and acai, and credit lines, for working capital and to finance exports to other markets.
There are also requests related to regulation, for the use of fresh products – such as adding honey instead only their essence. Another sector’s election and which is under government assessment, according to the Estadão/BroadcastIt is the increase in the minimum compulsory content of fruits and fruit juices in frozen sodas and beverages, which could absorb part of the fruits as sleeves that will no longer be exported. These measures would only depend on a presidential decree, without the need for approval by Congress.
Below is a summary of the measures being analyzed by Lula:
– Credit: The government studies credit measures to help business capital. There are also requests from both agro and industrial sector to find a solution to exchange rate contracts (ACC). This line is taken by exporters, with lower interest rates, through export revenue as warranty. When an importer cancels the purchase, and this is the risk of tariff, exporters are automatically required to pay higher interest rates;
– Government purchases: The government has already announced that the relief plan will involve at least short -term government purchases, which can mainly help agribusiness. More perishable products, such as fruits, honey, fish and acai, could be sold directly to the government, because there is a risk of not being able to be redirected to other countries;
– Taxes: The rapid return of tax credits is one of the main demands of Agro and Industry. They claim that they are taxes that have been paid along the export chain, which is exempt, and are therefore entitled to receive. The measure, therefore, would have no fiscal impact. Another proposal would be the freezing of tax payment for a certain period, and then the installment is paid;
– Jobs: In cases of dismissal risks, companies ask the government to flexibility to grant collective vacations. There is also a request for the program that reduced the workday during the pandemic to be relaunched. In this case, the worker has a piece of salary cut, and another part paid by the government. The counterpart would be the maintenance of the jobs;
*With information from Estadão Content
Posted by Nicolas Robert
