São Paulo, January 13, 2004 (Agência Brasil - ABr) - The Minister of Development, Luiz Fernando Furlan, guaranteed that, on January 15, the measure that reduces from 9% to 7% the export tax on hides and wet blue skins, raw material used in shoe manufacture, will take effect.

According to Furlan, since the measure represents a decision by the Camex (Export Chamber), composed of 6 Ministers, it is not up to him to revoke it. Furlan agreed to review the decision in case the shoe-manufacturing sector suffers losses during the course of the year. "We are talking about 0.23% of the sector's exports, US$ 7.8 million in a total of US$ 3.3 billion. Is this relevant? Perhaps as a banner," he said.

Furlan also said that the Leather Footware Forum will be open, and the sector will be heard. He ended his speech jocosely: "Skinning a Minister doesn't produce dividends." He was in São Paulo participating in the opening of the Leather Fashion International Footware, Sporting Goods, and Leather Goods Fair. The Camex determined a gradual reduction in the tax on wet blue until its complete elimination in 2006. The governor of Rio Grande do Sul and the footware sector asked that the measure be revoked, on the grounds that countries that manufacture footware will have access to this cheaper leather, to the detriment of the domestic market. (DAS)