São Paulo – The exemption of Brazilian products from customs duties by Libya is partly based on the cooperation between the two countries. The Libyan Government of National Unity announced the implementation of a consumption tax, which will apply to imported goods that have local production or whose import exceeds domestic demand. However, exports from Brazil will remain exempt from these fees.
“The exemption granted to Brazil was due to the importance of cooperation, the strength of the trade balance, and food security,” said the Libyan ambassador to Brasília, Osama Ibrahim Ayad Sawan, regarding the relationship between the two countries. Last year, Brazil exported USD 655 million in products to Libya. The main product exported was iron ore, followed by food items such as chicken meat, beef, sugar, coffee, and vegetable oils. Overall, there was a 45% increase in sales.
The decision to apply the taxes was announced by the Libyan Embassy in Brazil at the end of April, along with the exemption granted to Brazil. Details about the taxes and the products included in the measure are still under development and definition. According to the ambassador, many countries will be affected, but the exemption does not apply to many. Sawan believes the decision will remain in effect for an indefinite period and says that it should take effect soon.
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Libya exempts Brazilian goods from new tax
The measure was taken by the government through the Ministry of Economy and Trade, which provided a document outlining the reasons for the decision, including the reduction in demand for foreign currency, the development of local Libyan industries, and the increase in customs revenue to finance the state’s budget. The text also mentions the current international scenario, with major global economies adopting protectionist policies, and cites the principle of commercial reciprocity.
Translated by Guilherme Miranda
