Brasília, November 19, 2002 (Agência Brasil - ABr) - The Managing Committee of the Foreign Trade Chamber (Gecex) has decided to keep the export surtax on wet blue leather at 9% ("wet blue" is leather in an initial stage of processing) for another year. The reason given for maintaining the surtax is "to provide an incentive for exporters to come up with goods of higher aggregate value [such as footwear and bags]," says minister of Development, Industry and Foreign Trade, Sergio Amaral.

For over a year, Brazil has attempted to reduce exports of "wet blue" because it goes to countries which purchase it cheaply, use it to make more goods which are then exported back to Brazil with competitive prices. (AB)