Federal Government and States to Purchase Food Products from Affected Exporters

Strategic Insights -

The Federal Government, along with states and municipalities, has announced plans to purchase food products from family farmers and legal entities that have been impacted by the US government's imposition of additional tariffs on Brazilian exports. This move aims to mitigate the economic effects of the unilateral increase in import tariffs, announced on July 30th, which could lead to significant losses for Brazilian exporters. The government has established a list of approved foods for purchase, including acai, coconut water, and various types of nuts, and has provided a set of regulations for producers to follow.

Key Takeaways:

  • The Federal Government, states, and municipalities will purchase food products from family farmers and legal entities affected by the US tariff hike.
  • The list of approved foods for purchase includes acai, coconut water, cashew nuts, Brazil nuts, honey, mangoes, fish, and grapes.
  • Producers must submit documentation, such as a Declaration of Loss (DP), to sell directly to the government.
  • The Sovereign Brazil Plan aims to protect exporters, preserve jobs, encourage investment, and ensure the country's economic development.
  • The Plan includes measures such as expanding export financing lines, suspending taxes for exporting companies, and increasing refunds through Reintegra.
  • The Export Guarantee Fund (FGE) guarantees R$30 billion in credit at affordable rates for exporters.

Statistics:

  • Up to 50% increase in import tariffs imposed by the US government on Brazilian products (July 30th).
  • R$30 billion in credit guaranteed by the Export Guarantee Fund (FGE) for exporters.
  • Number of food products approved for purchase by the government: 8 (acai, coconut water, cashew nuts, Brazil nuts, honey, mangoes, fish, and grapes).
  • Producers must submit Declaration of Loss (DP) when exporting affected products.

Sources:

  • Interministerial Ordinance No. 12 ( sourced from the Official Gazette of the Union).
  • Provisional Measure 1309/25 (sourced from the Official Gazette of the Union).
  • Sovereign Brazil Plan ( launched by President Luiz Inacio Lula da Silva on August 13th).