MERCOSUR will lower the Common External Tariff by 10%, without affecting footwear

At the beginning of October 2021, the foreign ministers of Argentina and Brazil agreed to a 10% reduction in the Common External Tariff that regulates imports of products from outside MERCOSUR. The measure promotes a greater entry of materials and supplies according to the needs of its members, and creates new expectations for the trade that this bloc maintains, mainly with Asia and Europe.

Either way, its entry into force will be effective when the remaining members, Paraguay and Uruguay, approve this decision.

The joint statement from both foreign ministries highlighted that “this is an important step towards increasing the competitiveness of the States Parties and towards strengthening regional production processes, which will promote a beneficial insertion of MERCOSUR production into global value chains".

The Minister of Foreign Affairs of Argentina, Santiago Cafiero, declared that in the tariff reduction agreement the protections are maintained through the exceptions of intensive work in sectors such as automotive, textile and footwear. In the same vein, his Brazilian counterpart Carlos França, expressed his vocation to protect the most sensitive industries in his country.

Consulted sources of the footwear industry of both countries -Argentina and Brazil- agreed that the new tariff regime does not modify the current system for the entry of extra-zone footwear, which will continue to pay the same current duties, which oscillate between 20 and 35% .

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