The United States pays Brazil $147 million a year to assist
their cotton farmers. In exchange,
Brazil agrees to not impose any new tariffs on specific imported goods. Those goods include yachts, inboard sport or
pleasure vessels, rowboats, canoes and PWC, but would exclude outboard boats. The U.S. has been paying Brazilian farmers
since 2002. The subsidy was due to be
revisited during the 2012 Farm Bill, but Brazil again threatened to increase
tariffs, specifically on powerboats from 20% to 40%. However, Brazil has other reasons to raise
taxes on boats. They are trying to
protect common market agreements and their own manufacturers. Maybe the U.S. could just pay their boat
manufacturers a subsidy too?
Brazil is one of several economies that are hot on the radar
of manufacturers of luxury and indulgence items. These countries (Brazil, Russia, India, and
China) have quickly growing markets with consumers that have considerable amounts
of disposable income. With a changing
global marketplace, it is important for boat manufacturers to go where the
buyers are; hopefully those markets will be receptive to our goods.
Check out more about exporting to a changing world.
Source: TradeOnly Today
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