Taxa das blusinhas and São Paulo textile retail sector

Abstract

Tariff policies in foreign trade are constantly debated; these measures are often considered interventions that distort market functioning, making it less efficient. However, the facts show that certain businesses would be unable to survive without state protection, impacting job creation and income generation. This article aims to understand the Programa Remessa Conforme (PRC), popularly known as “taxa das blusinhas”, as a protectionist public policy, analyzing its impact on the textile retail sector in São Paulo state. Based on a comparative study of data relating to the Brazilian trade balance and variations in sectoral results before and after the implementation of the measure, this research aims to understand the efficacy and effectiveness, primarily, of a protectionist measure in what it proposes: to protect the domestic market from the practice of predatory pricing of imported products. It is a specific analysis of the textile retail sector in São Paulo, its exposure to the advances and growth of e-commerce and, consequently, to direct competition from the world's largest retailers.