Brazil-Vietnam tilapia trade dispute intensifies over state taxes

Vietnamese fish exporters have lodged an urgent request with Brazil’s federal government to investigate state-level tax and sanitary measures that raise the cost of imported tilapia. States such as São Paulo, Paraná, Santa Catarina, Minas Gerais and Pernambuco have added ICMS to the import price, with rates ranging from 7% to 22%, prompting the Vietnam Association of Fish Producers and Exporters to argue that “Vietnam made a plan to export to Brazil and now complains because the states are adopting legal measures to protect local production.”

Domestic tilapia prices fell in June as domestic consumption weakened, while exporters rushed shipments to the United States, achieving the highest export volume of the year. Analysts say the surge aims to ship as much product as possible before new U.S. tariffs take effect. The dispute highlights tensions between Brazil’s effort to protect its aquaculture sector and Vietnam’s push for equal market access.