(Business News Americas) -- Brazil's national plastics industry association Abiplast said the decision to raise import tariffs on plastic resins was a surprise and would lead to higher raw material costs for the industry.
Jose Ricardo Roriz Coelho, president of Abiplast said in statement "the greatest surprise is that these inputs are supplied by just one company in Brazil, the monopoly consisting of Braskem."
Roriz said the government should not be protecting this monopoly from international competition, but rather those companies further down the plastic chain who add value to products and create employment.
"This misguided measure could have a negative impact on the end prices of various products... decisions such as this increase in the tariff help one company at a particular time, but have a devastating effect on the production chain," Roriz said.
"There are various sectors that should be protected which are exposed to unfair international competition, but this is definitely not the case for thermoplastic resins."
MRC