04 Nov, 2011

Brazil has been criticised by an official from the Korean auto industry in reference to its recent tax increase on vehicles with imported content.


Huh Wan, executive managing director of the Korea Automobile Manufacturers Association said the hike, of 30 per cent, was a ‘setback’, and added: “I believe it goes against the provisions of the WTO [World Trade Organization]. I hope the Brazilian government will reconsider. Many people are paying attention to this.”


In addition, according to Bloomberg the Brazilian Supreme Court has suspended the tax, ruling that because the government failed to give 90 days’ notice, the increase was illegal. The suspension is to be upheld until mid-December.


Hyundai, the Korean car manufacturer announced plans in March to build a large plant in Brazil worth $600 million, with the aim of making around 150,000 cars annually.

Brazil is Korea’s biggest Latin American trade partner and Korean trade with the whole of Latin America increased last year by 29 per cent to a considerable amount of $43.9 billion. 


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