Brazil’s textile and chemical industries demand protectionist measures
The two industrial sectors are becoming more and more affected by highest import threats. Early 2013 Brazil initiated a new automotive policy under the motto of Inovar and this serves now as model for the textile and chemical industries
Inovar allows companies in the automotive sector to reduce their industrial taxes which was formerly increased by 30 % of VAT and investing in R&D and innovation in Brazil.
In 2012 the Brazilian textile industry showed a trade balance deficit of around USD 5.3 billion and underwent a loss of 140000 jobs. The textile industrialists of the country do propose access to the simplified and beneficial tax system “Simples Nacional” for all domestic sector companies, because without these benefits it is doubtful that the Brazilian textile and clothing industry will survive.