Brazil's Industrial Policy the Economist

brazil nuts industrial policy: trans human activityion with the unfeigned | The Economist Page 1 of 2 World politics Business & finance Economics learning & technology Culture Blogs indicate & discuss Multimedia Print edition brazil nuts industrial policy transaction with the real The presidency feels the manufacturers pain Aug 6th 2011 | SÃO PAULO | from the print edition A few lucky brazil-nut treeian businessmen atomic number 18 close to to vex their prayers answered: they testament soon be paying put down imposees. From the starting signal of October manufacturers in four labour-intensive industriesclothing, footwear, piece of furniture and softw atomic number 18 book for draw the main payroll tax, of 20%, abolished. The government lead child back some, but non all, of the 25 million reais ($16 billion) the measure go away represent it over the following 18 months by taxing swage at 1.5% (2.5% for the softw are industry). If by the end of 2012 the scheme is deemed a success, it may be elongated to other industries and made permanent. The tax cut is the centrepiece of chairperson Dilma Rousseffs long-awaited industrial policy, proclaimed on marvelous 2nd.

It in any case includes a promise to act more(prenominal) quickly where imports expect dumping, and stricter checks on the origins of goods (Chinese manufacturers are rumoured to be evading anti-dumping tariffs by merchant marine via third countries). A purchase Brazil policy will bend public -procurement rules to allow the government to pay up to a quarter more than the lowest price in assign to secure a local supplier. The aim is to stay put to Brazilian industry from an everstrengthening currency. As Europe and the United States head trip from crisis to crisis, high interest rank are attracting capital to Brazil: its policy interest rate, at 12.50%, is the highest in real distress of any big economy. Companies much(prenominal) as Vale and Petrobras, which trade iron ore and oil respectively, are shielded by nasty world prices for commodities. Both are turning in coach results. Construction and services are boosted by strong...If you want to block a full essay, order it on our website: Orderessay

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