The recent reduction in import tariffs on refrigerators, washing machines, tires, and plastic supplies has come into effect following the publication of Decree 384/2024. This measure aims to reduce tariffs on essential goods for consumers and industries. The tariffs on refrigerators and washing machines have been reduced from 35% to 20%, aligning them with the rates shared by Mercosur member countries. Similarly, the tariff on tires has been lowered from 35% to 16%, benefiting truck and bus covers exclusively. The reduction in tariffs on plastic inputs, specifically polypropylene, polyethylene, and PVC, from 12.6% to 6%, is expected to lower manufacturing costs and consumer prices for a wide range of products.
In the agriculture sector, the government has reduced tariffs on fertilizers and herbicides to 0% and 12.6%, respectively. This move is aimed at encouraging the use of these strategic inputs in agricultural activities to improve crop yields. The government hopes that these tariff reductions will lead to lower prices for consumers, increased competition in the market, and improved economic conditions. However, there are concerns regarding the immediate impact of these tariff reductions as importers’ willingness to pass on the savings to consumers remains uncertain.
Local manufacturers are calling for the elimination of the Country Tax to level the playing field against subsidized imports. They warn that without this tax incentive, they may be dominated by imports from China rather than opening up to other markets like the United States or Europe. As such, it remains unclear how these tariff reductions will ultimately affect businesses and consumers in each sector.
Overall, while these tariff reductions aim to improve accessibility of essential goods for consumers and industries alike, their immediate impact remains uncertain due to various factors such as importers’ willingness to pass savings onto consumers and competition within domestic markets.
Minister of Economy Luis Caputo has also promised further reductions on foot-and-mouth vaccine imports for livestock farming industry which could further help this sector grow economically.
The reduction in import tariffs is a positive step towards promoting trade between countries while ensuring fair competition within local markets. It remains important for policymakers to continue monitoring its impact and taking necessary steps if needed.
In conclusion, while these measures can benefit many sectors such as agriculture by reducing costs of production thereby improving profitability but it also needs careful monitoring so that domestic businesses can adapt accordingly before facing any negative consequences from subsidized imports from other countries or regions.
