SÃO PAULO Brazils Ministry of Development, Industry and Foreign Trade (MDIC) has "requested more time to deepen the technical analysis" related to a request for a ferrous scrap export tax.
The request, therefore, had "not been analyzed" Feb. 5 by the council of ministers of the Chamber of Foreign Trade (Camex), as originally scheduled, MDIC said.
The export tax, requested by Brazilian steelmakers association IABr in August, received intense criticism from Inesfa, the institute of iron and steel scrap companies.
Inesfa filed an objection to IABrs request two weeks ago, saying that a tax would inhibit exports, result in excess scrap in Brazil and, consequently, lead to lower prices in the domestic market.
Inesfa said the scrap sector "celebrated the decision" taken by Camex. "The illegality of IABrs demand, formulated as a measure of reciprocity, was patent and configured retaliation, a practice widely condemned by the (World Trade Organization)," André de Almeida, Inesfas legal adviser and a lawyer at Almeida Advogados, said in a statement.
Brazils scrap sector will now work "for the (export) tax not to return to the government agenda," Inesfa said.
A version of this article was first published by AMM sister publication Steel First.