Venezuela's 77% Tariffs Hit Business Owners

Venezuela Tariffs generated concern in the Brazilian business sector, especially among entrepreneurs in Roraima, after the imposition of tariffs of up to 77% on exports of products from Brazil.

This article will explore the implications of this decision, which contradicts an exemption agreement signed in 2014, and will analyze the evolution of trade relations between Brazil and Venezuela.

With significant exports and imports in 2024, the confusion caused by the sudden imposition of tariffs is a reflection of the deterioration in bilateral relations, which has worsened since 2022 and culminated in Venezuela's suspension from Mercosur in 2016.

Imposition of tariffs and immediate impact in Roraima

Venezuela's recent decision to impose tariffs of up to 77% in Brazilian exports is a hard blow for businesspeople in Roraima, who depend significantly on this market.

In an unexpected movement, Venezuela contravened the agreement of 2014, which provided for tariff exemptions for certain products, leaving Brazilian exporters in a state of confusion and uncertainty.

The situation is particularly serious for Roraima, whose economy is strongly linked to cross-border trade with Venezuela.

Entrepreneurs, caught off guard, face unprecedented challenges to maintain the competitiveness of their products in the Venezuelan market.

This tariff increase comes without prior notice or negotiation, as detailed by BBC, negatively affecting business predictability.

While the Ministry of Foreign Affairs monitors the situation, local business owners are seeking solutions to overcome this significant obstacle.

The trust, previously sustained by the agreement of 2014, is now shaken, making it urgent that interventions be made to normalize trade relations between the countries.

Bilateral trade overview in 2024

In 2024, trade between Brazil and Venezuela reached a significant volume, with Brazilian exports totaling US$ 1.2 billion and imports of US$ 422 million.

Products such as sugar, rice and corn stood out in Brazilian exports, while aluminum and fertilizers predominated in imports.

However, the recent imposition of tariffs of up to 77% on Brazilian products has harmed businesspeople, particularly in Roraima, due to a previous tariff exemption agreement.

| Product | Exports (US$) |
| ——– | —————–|
| sugar | value |
| rice | value |
| corn | value |

Exports of agricultural products such as sugar, rice and corn are crucial to the Brazilian economy, representing an essential part of trade with Venezuela.

These products are not only economically important, but also ensure food security in the region.

Aluminum, widely used in various industries, and fertilizers, essential for agriculture, are equally vital for Venezuela.

The abrupt increase in tariffs challenges a previously stable market, forcing business owners to adjust.

O exemption agreement of 2014 is now threatened, adding uncertainty to the already complex bilateral relationship.

Brazil, through its Ministry of Foreign Affairs, is constantly monitoring the situation, seeking a regulatory reestablishment that benefits both trading nations.

Deterioration of Brazil-Venezuela relations since 2016

Since Venezuela's suspension from Mercosur in 2016, due to democracy issues noted by member countries, relations between Brazil and Venezuela are facing a process of continuous deterioration.

This event, described in detail in Mercosur official website, marked the beginning of a significant political and economic distancing.

The worsening of post-2022 further increased trade difficulties Between 2016 and 2024, trade flows between the two countries fell precipitously, with a direct impact on the export and import sectors, as highlighted in a recent economic analysis Brazilian businesspeople, especially in Roraima, are expressing uncertainty about the tariff instability imposed by Venezuela, which recently raised tariffs to 77%, affecting products such as sugar and rice. "The Ministry of Foreign Affairs emphasizes that it is 'following developments with concern,'" reaffirming Brazil's commitment to pursuing trade normalization.

The deterioration of relations highlights the complex interaction of political and economic elements, highlighting the importance of integrating diplomatic solutions to reverse this scenario.

Itamaraty's actions in the face of the trade crisis

In response to tariffs imposed by Venezuela, the Ministry of Foreign Affairs of Brazil has taken a proactive approach to mitigate the negative effects on bilateral trade.

Closely monitoring the situation, the ministry uses bilateral meetings as a central tool to directly address the challenges faced by Brazilian exporters.

These meetings involve high-level representatives from both countries, seeking to find mutually beneficial solutions.

Furthermore, Itamaraty reinforces the importance of maintaining dialogue channels open with the Venezuelan government, facilitating the constant exchange of information and promoting transparency in negotiations.

One of the strategies adopted includes the search for normalization of trade, restoring favorable conditions for exporters.

At the same time, efforts are made to ensure that previously established exemption agreements are observed.

To overcome this crisis, continued cooperation between Brazil and Venezuela is essential.

In short, the tariffs imposed by Venezuela represent yet another challenge to trade relations between the two countries.