Brazil extends preference for local goods in government purchases

The Brazilian government extended preference rules for local products in government purchases until the end of next year, according to the official gazette on Wednesday.

The margin of preference for Brazilian machinery, apparel, software, medicines and other products over imported goods was set to expire at the end of 2015. The decree did not specify if there were any exceptions to the extension.

The rules favoring local production were mostly implemented during President Dilma Rousseff's first term between 2011 and 2014 to strengthen the local industry, but failed to prevent a severe crisis among manufacturers. Critics blame protectionism for fueling inflation and denting Brazil's productivity.

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