Brazil adopts MERCOSUR instrument to increase import tariffs due to trade imbalances

On January 24, 2024, Decrees No. 11,894/2024 and 11,895/2024 were published to incorporate Southern Common Market (“MERCOSUR”) instrument into the Brazilian legal system – the “Special Tariff Measures Due to Trade Imbalances Derived from the International Economic Situation”.

This instrument enables MERCOSUR member countries to temporarily raise import tariffs above the MERCOSUR Common External Tariff (“TEC”), for imports originating from outside the trade bloc. The tariff increase will be valid for 12 months, which may be extended if the conditions that justified the measure persist.

The innovations complement other Brazilian instruments concerning temporary modifications of import tariffs, such as the Brazilian List of Exceptions to the Common External Tariff (LETEC), shortage cases (GMC Resolution No. 49/19), the List of Exception for Capital Goods and Informatics and Telecommunication Goods (“Lebit/BK”), the Ex-tarifario regime and the regime for non-produced automotive parts.

The instrument will enter into force 30 days after the Latin American Integration Association (ALADI) notifies that all MERCOSUR member countries have duly implemented the measure, and will initially be valid until