Imports of automobiles grows 48% after end of Innovate Auto

Without the program Innovate Auto, which sobretaxava cars shopping outside of MERCOSUR and Mexico's imports of cars grew by 48% in the first quarter of 2018 compared to the same period last year, reported today (2) the Ministry of industry, trade Outside services. In the first three months of the year, Brazil imported 50,876 passenger vehicles, compared with 34,342 units in the first quarter of 2017.
In values, the country imported US $ $922 million in passenger cars from January to March, up 76% in comparison with the US imported $540 million in the same period to 2017. Currently, the Government negotiates a new automotive regime, the 2030 Route, which was not announced until now.
From 2012 to 2017, the Innovate charged additional rate Auto 30 percentage points of tax on industrialized products (IPI) for vehicles produced outside of Brazil. The exception were Argentina and Mexico, with which Brazil has established import quotas that could escape the surcharge.
With the end of the Innovate Auto, at the end of last year, other countries began to sell cars to Brazil on an equal footing with Mexico and Argentina. Even so, these two countries concentrated 60% of the growth of imports of vehicles this year.
"Our analysis shows that the main portion of the growth occurs because of increased domestic purchases, because the origin are countries that already have automotive agreement with Brazil, like Argentina and Mexico, and that were not subject of additional tax," said the Secretary of Foreign trade of the Ministry of industry, Trade and services, Abram Grandson.
According to Abram Neto, among the countries with the Brazil automotive, who responded by 40% growth remaining in the first quarter, include Germany, the United States, South Korea and Japan.
The growth of imports in excess of the increase rate of exports made the balance of trade fall back in March. Last month, Brazil has exported US $ $6.281 billion more than it imported, down 12% from the net profit of $ $7.136 billion in March last year.
For this year, the Ministry of industry, Trade and services trade balance surplus is projected around $ $50 billion, down from the surplus of $ $67 billion record obtained last year. According to Abram Neto, the recoil due to the recovery of the economy, making the brazilian population resume consumption of imported goods.
Despite the high imports of automobiles, the Secretary says that the growth of imports is being healthy because the part is intended for the purchase of goods used in production. In the first three months of the year, the purchase of capital goods (machinery and equipment) grew 18.2 percent, and the import of intermediate goods (inputs) rose 9.8% compared to the first quarter of last year. On the other hand, the purchase of consumer goods rose 18.8%.