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The Long-Awaited Free Trade Agreement Between Mercosur and the European Union Is About to Be Realized, and with It Comes the Promise of Eliminating the Import Tax on European Cars. The Historic Partnership Between the Blocs, That Together Form a Market of 31 Countries and More Than 718 Million People, Aims to Increase Competitiveness and Expand International Trade.
The news? European vehicles will be able to arrive in Brazil without the traditional import tax on European cars – but that won’t happen so quickly. The schedule provides for a complete tariff reduction only in 30 years. The reduction will be gradual, allowing time for the national automotive industry to prepare to compete on equal terms with the European market.
How Will the Reduction of the Import Tax on Cars Work?
According to the Palácio do Planalto, the reduction schedule varies according to the type of technology used in the vehicles. Electrified cars, for example, will have the tax eliminated in 18 years. For hydrogen-powered vehicles, the total exemption will be achieved in 25 years, with a grace period of 6 years. For new technologies, the timeline is 30 years, also with 6 years of grace before the reduction starts.
The government emphasized that the agreement includes a unique safeguard clause. If the increase in European imports causes imbalances in the national industry, such as a drop in employment levels or damage to local production, Brazil may temporarily suspend the tariff reduction schedule. This measure can be applied for up to 5 years, reverting to the standard rate of 35%.
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In a silent race, Shopee signs a mega contract in Guarulhos and accelerates the e-commerce war with faster deliveries, pressured shipping, and a new threat to rivals in Brazil.
Impacts and Expectations
With the elimination of the import tax on European cars, the Mercosur-European Union agreement seeks to diversify Brazil’s trade partnerships, reducing dependence on China as the main market. Additionally, there is an expectation of stimulating the modernization of the automotive industry in Brazil, promoting investments in more sustainable technologies.
On the other hand, there are still uncertainties. Anfavea (National Association of Motor Vehicle Manufacturers) has not commented on the impact of the agreement so far. However, experts point out that the gradual nature of the process is essential for Brazil to adapt its production and avoid a market shock.
A Historical Milestone
The agreement between Mercosur and the European Union marks a significant advance in trade relations between the blocs and establishes a solid foundation for creating a common market of more than 22 trillion dollars in GDP. Despite the challenges and the long timeline for complete implementation, the partnership promises to redefine the automotive landscape in both Brazil and Europe.
For now, the question remains: will we be ready to welcome European vehicles without the import tax on European cars within the coming decades? Only time will tell.
Senta e espera que nós vamos comprar sem impostos,que piada de mal gosto
Vai demandar mais uma década até começar a funcionar. Este acordo começou a ser costurado no governo de FHC. Foi assinado em 2019 e agora os detalhes estão começando a serem discutidos.
60 anos esperando????? …… A verdadeira politica de palanque!!!!!! …….piada.
Presidentes que negociaram o famoso acordo.
Tempo de espera dos presidentes ou do pagadores de impostos, NÓS!!!!!!!
FHC 8 anos.
Lula 8 anos.
Dilma + Temer 8 anos.
Bolsonaro 4 anos.
Lula 2 anos….
Soma mais 30 anos…….. TEMPO DO PROJETO!!!!!! ….. Sério?????
Quem está, ou estará vivo para ver as costumeiras mudanças que favorecem poucos.
Somos iguais a nossa justiça, cega, onde a TV cria o mundo de fantasia, muito longe da realidade ou da verdade….
FÉ…….
O benefício não ficará restrito ao mercado automotivo mas sim ampliará todo o escopo comercial entre os povos envolvidos e equilibrará o peso que a China tem acumulado no mercado mundial redistribuindo os ovos em mais cestas antes que ela própria deixe de dar conta por atingir seu limite comercial .