The Brazilian government has decided to set import quotas for 11 steel product categories, including rolled steel and pipes, and impose 25 percent duty for the excess volumes, according to Reuters. The decision comes after some Brazilian steelmakers complained regarding lower-priced imported steel flooding into the domestic market.
The 25 percent duty which will be imposed when the quota volume is exceeded by more than 30 percent, will be effective for 12 months, during which the market conditions will be monitored. In addition, the quota volumes were determined by taking into account the average imports of each of these 11 steel products from 2020 to 2022. It is noteworthy that the products are already subject to import fees of 9-12.6 percent.
The new measures, which are subject to approval, are expected to come into force within one month. In addition, the Brazilian government is also planning on implementing quotas for four other steel products.