Brazil Orange Juice Maker Cutrale Freezes Exports Over U.S. Tax
Brazilian orange juice producer Cutrale has suspended exports of orange juice concentrate from Brazil to the US as a new tax on exports by the government of President Jair Bolsonaro has eroded its profits.
Photo Insert: Cutrale supplies Coca-Cola orange juice brands such as Minute Maid and Simply Orange.
The Brazilian tax on exported juice concentrate has affected the profit margins for shipments from Brazil, the world's largest orange juice exporter, Reuters reported. Cutrale, which supplies Coca-Cola orange juice brands such as Minute Maid and Simply Orange is looking to export from Mexico, the Brazilian newspaper Valor Economico reported.
Cutrale, which usually ships about half its Brazilian orange juice exports to the United States, declined to comment on the report, according to Reuters. Ibiapaba Netto, director at industry group Citrus BR, said the group is trying to revert the new tax on orange juice imports, created in 2019 by an internal discussion within Brazil's internal revenue service.
There is a bill that could reverse the tax being analyzed in Congress and the group is also trying to question the tax in administrative proceedings.