Brazil scraps tax on small parcels as Chinese platforms lose US and EU access

Key facts

• Brazil has abolished a tax on small international parcels.
• This tax reduction is expected to benefit Chinese e-commerce platforms.
• These platforms are currently facing challenges in accessing US and EU markets.

Brazil has decided to eliminate a tax on small international parcels, a move that is anticipated to benefit Chinese e-commerce giants such as Shein and AliExpress. This policy shift occurs at a time when these platforms are encountering significant challenges and potential market access restrictions in the United States and the European Union. The removal of the tax is seen as a strategic move by Brazil to attract foreign investment and boost its e-commerce sector, potentially positioning itself as an alternative market for these companies.