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Canned Sardine Tariff Removal Sparks Crisis in Brazil's Fishing Sector

BRAZIL
Friday, March 14, 2025, 09:00 (GMT + 9)

Government Policy Threatens Brazilian Fish Production Chain

Congressman Pedro Lupion warns that the Federal Government's decision to eliminate import tariffs on canned sardines poses a direct threat to the national fishing industry and could result in the loss of over 30,000 direct jobs.

The government's plan to remove import duties on canned sardines, scheduled for discussion this Thursday (13) at the Foreign Trade Chamber (Camex), could severely disrupt the production chain, leading to job losses and increased reliance on cheaper imports that lack the regulatory oversight applied to domestic production.

Pedro Lupion (PP-PR), president of the Parliamentary Front for Agriculture (FPA), emphasizes the potential consequences of this policy. "This measure could cause the collapse of Brazil's sardine production chain. We are talking about a significant impact that endangers jobs, fishermen, and national industry, without providing any real benefit to consumers," he states.

Canned sardines currently account for 75% of the Brazilian fishing industry's revenue. Imports of this product are currently taxed at 32%, protecting the domestic industry from predatory competition from Asian countries with less stringent environmental, labor, and tax regulations. The tariff exemption could incentivize companies to abandon domestic production in favor of imports, directly affecting the fishing fleet and a large workforce.

Economic and Employment Impact

The states of Santa Catarina, Espírito Santo, Rio de Janeiro, and Rio Grande do Sul, responsible for 90% of national production, would be most affected. An estimated 25,000 direct jobs and 42,000 indirect jobs are at risk.

Lupion stresses the broader economic implications. "There is no justification for this change. Canned sardine inflation was only 1.12% in 2024, while the country's overall inflation was 4.83%. The government is destroying jobs and weakening the economy without any real gain for the consumer," he cautions.

The Brazilian Association of Fish Industries (Abipesca) also opposes the measure, arguing that tariff removal will not significantly lower consumer prices but will lead to industry closures and a decline in national production.

Proposed Measures to Protect the Sector

The Parliamentary Front for Agriculture (FPA) proposes three immediate actions to prevent the collapse of the national industry and ensure affordable consumer prices:

• Maintain the 32% tariff on canned sardines within the Common External Tariff Exception List (LETEC).
• Include canned sardines in the basic food basket for tax reform purposes, reducing costs for both industry and consumers.
• Retain the zero tariff on frozen sardines, directly benefiting national producers.

"We cannot allow a reckless decision to destroy an entire productive sector. The government must reconsider this measure and ensure that national production continues to generate jobs and income for Brazilians," Lupion concludes.

Source: FPA Advisory

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