Industry wants government against Chinese invasion in the country – 05/01/2023 – Panel SA

Large industries linked to the CNI are trying to prevent the Lula government from paving the way for Chinese groups to settle in the country with tax exemption in Export Zones, the so-called ZPEs.

These areas offer tax exemption on foreign sales. They also allow currency from purchase and sale operations to be deposited outside the country as a way of ensuring that they do not suffer from the eventual devaluation of the real.

Strictly speaking, any large exporting company in the country enjoys the same advantages. However, the EPZs are installed in areas that still receive state ICMS incentives —which makes the operation more competitive.

As the legislation also allows industries installed there to sell internally, national sectors assess that there may be a cross-subsidy —advantages obtained in external production could be passed on to local prices.

Abrazpe, the association that represents the EPZs, is trying to convince the Minister of Industry and Vice President of the Republic, Geraldo Alckmin, that this crossed subsidy is an invention of the CNI to prevent the advancement of these areas.

It tries to get a nominee for the executive secretary of the council chaired by the ministry of Alckmin (Industry) to unlock the expansion of EPZs in the country.

Today there are 14 authorizations granted by this council, but only two are in operation. The third will be inaugurated this month, in Cáceres (MT).

Abrazpe tries to convince Alckmin that these areas can function as an important tool for reindustrialization.

The incentives may attract foreigners who currently import inputs from Brazil to sell the finished product abroad at a much higher price. It is for commodities such as coffee, corn, soybeans, wood, ores and oil.

With incentives to settle in EPZs, they could set up factories here for complete production in the country, generating jobs.

Julio wiziack with Paulo Ricardo Martins It is Diego Felix

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