BRAZIL: Independent Truckers Association Vows To Reduce Road Blockades

(RTTNews) - The Brazilian Truck Drivers Association (Abcam) said that it reached an agreement with the federal government and that the number of road blockades should decrease "in a significant way."

Abcam, which represents independent truck drivers, said that it still has to contact its members and explain the agreement reached with the government. "The entity is working so that the deal information reaches everyone, but it is worth remembering that even if Abcam favors the end of blockades, not every demonstrator feels the same."

Jose Lopes Fonseca, Abcam's president, said in a statement that truck drivers should get back to work feeling "proud" for not conceding to the government pressure. "Get back [to work] with the 'mission accomplished' feeling, but remember that the fight does not end here."

The Brazilian government has promised truck drivers to eliminate two federal taxes on diesel oil - Cide-Combustiveis and PIS/Cofins, which represent nearly 12% of the diesel price at the pump.

Brazilian Presidente Michel Temer also promised to keep diesel oil prices unchanged for 60 days and vowed to adjust them on a monthly basis. Since the decision is contrary to the Petrobras policy of virtually daily adjustments, the government will have to compensate the company.

Both decisions are set to drain billions of funds from the public budget and require Congressional approval. The president also issued a decree forbidding companies that manage toll roads to charge truckers for retracted axles.

The Brazilian president also issued a decree securing that 30% of the cargoes from CONAB, the state-owned company that manages food supplies and inventories, are delivered by independent truckers and promised to create a benchmark price for road freight in the country.