Coca-Cola Threatens to Leave Brazil If Free Trade Zone's Subsidies Are Not Returned

[Judi Lynn]

08/21/2018 - 14H56

The Coca-Cola Company is threatening to stop production in Manaus' Free Trade Zone if president Michel Temer doesn't bring back the tax breaks the soft drink industry had before the truckers strike, in May.

Alexandre Jobim, president of Abir (Brazilian Association of Soft Drink Manufacturers) took the matter to President Temer for the first time in June.

Abir represents 59 soft drink manufacturers, among them Coca-Cola, Inbev and Pepsi. They are threatening to cut 15,000 jobs because they fear a R$ 6 billion (US $ 1.5 billion) in sales in case Temer doesn't reverse the tax break cut.

Coca-Cola's US headquarters want this situation resolved until the end of this year, and insiders say it expects a bill establishing the tax on industrialized products of 15%, before Temer's mandate is over.

More:
https://www1.folha.uol.com.br/internacional/en/business/2018/08/1979447-coca-cola-threatens-to-leave-brazil-if-free-trade-zones-subsidies-are-not-returned.shtml

[AJT]

1. Isn't it something of an oxymoron...."free trade zone subsidies"?

[Buzz cook]

2. I think the Brazilians are capable

of mixing water corn syrup and artificial flavors then fizzing it up with a noxious gas.