Government studies ‘free zone of free zones’ in Mercosur – 06/11/2023 – Panel
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The Ministry of Development, Industry, Commerce and Services began studies to propose a kind of “free zone of free zones” for the countries that make up Mercosur.
A Free Zone is a region that receives subsidies from governments, through tax exemptions, to have its development stimulated.
In Brazil, for example, industries located in the Manaus Free Trade Zone pay less taxes as a way to compensate for the logistical difficulties of being in the Amazon and to encourage them to remain in the region.
When they export their products, however, they are subject to the same taxation as others in the destination countries.
The idea, therefore, would be to propose to Mercosur countries that these companies be treated differently in all the nations that make up the bloc. With this, it intends to encourage exports to natural partners due to proximity, bearing in mind that many of these areas are in places that are difficult to access.
Studies on the subject have already been commissioned to the Secretary of Foreign Trade, Tatiana Prazeres. The plan, however, is for the long term. The priority at the moment is to seal the agreement between Mercosur and the European Union, and any change in the South American bloc’s rules could further delay negotiations with the old continent.
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