Brazil's Government To Propose Import Tax Plan

Brazil's government will propose a plan to let countries impose an import tax on products from countries whose currencies decline rapidly, Estado news agency reports on September 19, 2011, citing development minister Fernando Pimentel.

The plan will be presented to the World Trade Organization and would impose limits set by international organizations such as the WTF on exchange rate fluctuations, the report said. If a country's currency moves outside the limits, other countries would be able to impose an import tariff on that country's products to offset the difference, the agency said.

Brazil's current import tax is no longer enough to counteract currency moves, the government says, and the proposal represents a long-term strategy to deal with the issue.