India is examining the likely impact of Brazil’s consideration of higher import duties on over 100 chemicals, including several varieties of plastic, with approval already given by Brazil’s foreign trade chamber for raising tariffs on several items for a year earlier this week, sources have said.

“The government is concerned about Brazil’s consideration of its industry’s demand for raising import duties on over 100 chemicals, including plastics, as it could hurt India’s exports. Right now the government is studying the likely impact and has also sought inputs from the Indian industry,” a source tracking the matter told businessline.

The matter may be taken up by India with Brazil once it gets a fuller idea of the likely impact of the proposed move.

The Brazilian government’s committee on foreign trade gave its approval for import duty increase on a number of chemical and fertiliser products last week to 20 per cent from existing 12 per cent and 7 per cent.

A number of widely used chemicals such as polypropylene (PP), polyethylene, (PE), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET), have been affected by the decision.

The decision has been forwarded to all Mercosur partners — Argentina, Bolivia, Paraguay, and Uruguay — who have 15 days to respond. If there are no objections, it would be implemented.

“The Brazilian industry has proposed more chemical products for duty increases that may still be considered by the government,” the source said.

The Embassy of India in Brazil, too, is analysing the items that are under consideration for import duty increase.

India exported chemicals and fertilisers worth about $800 million to Brazil in 2023-24. “The composition of India’s exports of chemicals and fertilisers needs to be studied to understand the extent to which the Indian industry is getting hit because of the increases and proposed increases in import duties,” the source said.

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