Before the announcement of Donald Trump’s tariffs, which introduced a 10% fee on Brazilian import this week, Brazil was already directed by the United States, along with 18 countries due to counterfeit products.
In the report from the US commercial representation office in January, entitled “Notorious forgery and piracy”, there is a chapter dedicated to the region 25 de Março Street, in the center of São Paulo.
The region, quoted with other trade areas such as Santa Ifigenia Street, BRás district, Pagé Gallery and the Madrugada fair, for example, is pointed out in the report as “notorious” to sell fake and pirated products.
The survey says that there are over a thousand stores that sell counterfeit goods of all kinds, including consumer electronics, clothing, shoes, glass, perfumes, fashion accessories, for example.
According to the holders of the original brands, it is one of the largest wholesalers and dealers of counterfeit products in Brazil and Latin America, the report says.
Edson Vismona, President of the National Forum against Pirate and illegality (FNCP), considers that this type of US report is presented every year and often refers to the general preference system (SGP), which evaluates the granting of customs benefits based on criteria such as intangible property protection.
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The latest changes in US customs criteria are a global range and are not directly related to the issue of intangible property, says Visemona. This is a much broader context. “It is still undeniable that the illegal market stops being a relevant factor in this scenario,” he says.
With the increase in taxation, prices for legal products should rise, which benefits the progress of the illegal market, notes the President of the FNCP.
In the unit’s accounts, the country lost $ 468 billion last year with illegality, given smuggling, forgery and piracy in 15 sectors in the economy. The figure includes direct industry losses and tax outcomes. “In a decade, the most quadrupled injury,” says Vismona.
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March 25 Shop owners
In a statement, Univinc25, a unit that represents tenants in March 25, says that “it is not fair to generalize the entire region as one of the most important outbreaks of piracy, when the reality for most traders is serious, committed and legalized work.”
The unit realizes that there may be insulated points with irregular products in unauthorized street trade and galleries, which occur in large shopping centers around the world.
However, it points out that the activity is “constantly monitored and fought by the documents in the delegated activities, in collaboration with the municipal and state government”.
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Claudia Urias, CEO of Univinco25, who signs the statement, says that on March 25 the region – one of Brasil’s most traditional trade centers – is quoted in the report as one of the most important piracy centers.