Brazil levying tax on ore export to affect EU and China

Published: 20 Oct 2009 00:22:01 PST

Oct. 20 MetalBiz--To increase the added-value of exported products, currently the Brazil government is researching to impose 5% tax on exported iron ore. The move will have an impact on the resource supply of big Brazil's iron ore importers such as EU and China.

During the 2007-2008 period, at the stage of the hiking foodstuffs' price, some governments of foodstuffs producing countries had started the policy of imposing foodstuff exports to control the rapid climb of the domestic foodstuffs. WTO, UN and IMF had called on these countries to cancel levying tax.

In order to avoid the similar thing again, EU submitted the advice to WTO at the end of 2008 that WTO should lay down the export rate regulations and set the upper limit.