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- Can Brazil import retreaded tyres?
- To further focus the analysis, suppose there are two potential foreign-source countries from which Brazil may import retreaded tyres – the EU and MERCOSUR (M) – and we assume that the export price of EU retreads is lower than MERCOSUR retreads, so P EU <P M. 7
- How many tires does Brazil factory make a day?
- Likewise, the factory will also increase its production capacity for truck and bus tires from the current 1,000 per day to 2,200 per day by April 2025. Our Brazil Factory has manufactured tires for passenger cars and light trucks since October 2013 and tires for trucks and buses since March 2019.
- Does the import ban reduce waste tyres in Brazil?
- • Brazil's ban on imports of used tyres results in domestic retreads of domestic used tyres. • Therefore, the import ban contributes to an overall reduction in waste tyres in Brazil. This syllogism is notable for a number of features. The result of reduction in waste tyres is purely theoretical, and has no empirical backing.
- Is Brazil's retreaded tyre policy a reasonable proxy for the import ban?
- We have argued that the Brazil trade policy on retreaded tyres prior to the import ban in 2000 when it imposed a 19% ad valorem MFN import tariff is a reasonable proxy for this outcome.
- Does Brazil have a welfare-economic impact on tyre retreads?
- We use the model in Sections 2.3 and 2.4 to examine the welfare-economic impact of Brazil's policies and of two possible alternative policies: (i) a production subsidy on retreads of once-used Brazilian tyres, and (ii) a tariff on imports of retreads.
- How does the import tariff affect tyre prices in Brazil?
- Because of the large-country assumption, the import tariff causes the price received by EU producers of retreaded tyres to fall to P EU1, whereas the price paid by Brazilian consumers increases to P S (= P EU1 +τ). Figure 11. Brazil's import demand and EU export supply, large countries
