Has Venezuela raised tariffs on Brazil? What is known about tariffs on Brazilian products?

Brazilian companies that export to Venezuela have reported, in the last week, difficulties in concluding trade negotiations with the neighboring country.

This is because Venezuela would have withdrawn a tax benefit provided for in a bilateral agreement signed by the countries in 2012.

The Federation of Industries of the State of Roraima (Fier) states that, since July 18, it has been receiving reports from businesspeople surprised by the charging of tariffs for the import of Brazilian products, which were previously exempt.

"We receive the information directly from business owners because we are responsible for issuing certificates of origin, which guarantee that Brazilian products enter Venezuela tariff-free. But even with the certificate, the products are being subject to tariffs," said Ivan Gonzalo, foreign trade analyst at Fier.

In a statement, the Ministry of Foreign Affairs (MRE) stated that it has been monitoring, in coordination with the Ministry of Development, Industry, Commerce and Services (MDIC), the reports of Brazilian exporters in Venezuela.

"The Brazilian Embassy in Caracas is investigating, together with the responsible Venezuelan authorities, elements to clarify the nature of the situation, with a view to normalizing the fluidity of bilateral trade, governed by Economic Complementarity Agreement No. 69 (ACE 69), which prohibits the collection of import taxes between the two countries."

ACE 69, signed during Venezuela's accession to Mercosur, guarantees zero tariffs for hundreds of products exported between the two countries, provided they are accompanied by a certificate of origin. However, the country was suspended from the bloc in 2017.

Reports sent by the La Guaira Chamber of Commerce to the Venezuelan government indicate that, since July 17, the country's customs system has stopped automatically applying the benefits provided for in trade agreements with Brazil, Argentina, Uruguay and Paraguay.

The Venezuelan-Brazilian Chamber of Commerce and Industry of Roraima informed the Brazilian ambassador in Caracas, in a letter, that customs agents were no longer able to register certificates of origin in the system, which meant that the tax was now being charged.

"There was no publication of any regulations or notice from the Venezuelan government. Therefore, we still don't know whether this was a deliberate decision or a bureaucratic error," Gonzalo said.

Local media outlets reported that the rates charged by the neighboring country, previously exempt, range from 15% to 77%, but Fier did not confirm the values to the report.

"The importer, that is, the Venezuelan businessman, pays the tariff. Therefore, we currently have no precise information about what type of tax is being applied or what the percentage would be," explained the federation analyst.

With uncertainty surrounding the amounts charged, Brazilian companies are reportedly temporarily suspending shipments to Venezuela.

"In practice, many importers have halted orders until they understand what tariff they will pay. This affects the entire chain," Gonzalo reported.

Business volume with Venezuela

In 2024, trade between Brazil and Venezuela reached US$1.6 billion, with US$1.2 billion in Brazilian exports, representing only 0.4% of the country's total exports. The main products traded include sugar and molasses, edible products and preparations, and corn.

The country, however, plays a significant role in Roraima's exports. In 2024, the state exported US$313.9 million in goods. Of this amount, R$144.7 million went to the neighboring country—46.1%.

The main products sold are foods, such as soybean oil, margarine, wheat flour and dairy products, many of which are produced in other states but sold by companies based in Roraima.

"Despite being in crisis, Venezuela remains a major customer, especially for northern Brazil. With the disorganization of the local production sector, the country has been purchasing food and basic products from Brazil. It is an important partner," Gonzalo assessed.

"It is essential that Brazil quickly initiate diplomatic dialogue to remove these barriers. Even if they appear to be isolated, they must be addressed within the norms of the international agreements signed between the two countries."

Fier reported that it has already communicated the problem to the Ministry of Foreign Affairs and the MDIC.

"It is now up to the federal government to seek explanations from the Venezuelan authorities. It is still unclear what motivated this charge, nor whether there is, in fact, a breach of ACE 69."

The Government of Roraima stated in a statement that it is following with concern the information about the increase in the ad valorem tax rate by the Venezuelan government, which directly affects products of Brazilian origin exported by Roraima.

"Any measure that increases the price of Brazilian products in the Venezuelan market significantly affects the competitiveness of our goods, with a direct impact on local entrepreneurs, agribusiness, job creation and, consequently, state revenue," the text states.

BBC News Brasil contacted the Venezuelan Embassy in Brazil. As of this writing, there has been no official response regarding the adoption of tariffs or the withdrawal of tax exemptions for Brazilian products.