BRASILIA, July 31 Brazil will not renew higher
duties due to expire later this year on 100 imported goods, a
government official told Reuters on Wednesday, in a move that
aims to lower inflationary pressures stemming from a weaker
Last September, President Dilma Rousseff's government
temporarily raised levies on imported products that include iron
pipes, bus tires, steel bars, glass, and aluminum cables, in an
effort to protect local producers.
The increase in tariffs sparked complaints from trade
partners, including the United States, about growing
protectionism in the commodities powerhouse.
The government plans to let the higher duties expire in two
months to prevent more expensive imports from pushing up
"We are adopting this measure to mitigate the effects of a
stronger dollar on inflation," said the official, who asked not
to be named in order to speak freely.
The real has depreciated more than 11 percent versus
the U.S. dollar this year, pushing up the value of imports. The
real weakened to four-year lows earlier on Wednesday.
A drop in transportation and food prices helped ease
inflation in the 12 months to mid-July, but the consumer price
index remains near the official target ceiling of 6.5 percent.