A Nation Divided by Trade Barriers

Brazil’s longstanding approach to shielding local industries from international competition is increasingly under fire. According to Abiplast, the national trade association representing plastics transformers, these protectionist policies are doing more harm than good — particularly for downstream manufacturing sectors that rely on imported raw materials.

In a statement this week, Abiplast argued that protectionism, while aiming to protect domestic chemical producers, has ultimately stifled innovation, inflated production costs, and accelerated Brazil’s deindustrialization. The group warns that unless this trend is reversed, Brazil’s broader manufacturing sector may continue to suffer — and with it, job creation and global competitiveness. Recycling Technology

The Crux of the Problem: Tariffs and Antidumping Duties

Abiplast’s criticism centers around a combination of import tariffs and antidumping duties (ADDs) that the government has implemented or extended over recent years. In particular, a series of elevated import tariffs introduced in October 2024 have hit hard.

These measures, meant to protect domestic producers of key polymers such as polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), and polyethylene terephthalate (PET), have led to a sharp increase in costs for companies further down the production chain.

“We are the only country in the world applying antidumping measures on polypropylene against the United States,” said Abiplast. “Meanwhile, other critical resins such as PVC, PET, and PE remain burdened by steep tariffs. This outdated model is choking our industry, eroding competitiveness and stifling innovation.” Recycling Technology

According to Abiplast, these protectionist barriers force Brazilian manufacturers to pay up to 40% more for plastic resins than their foreign competitors. The consequences? Higher domestic prices, mounting inflation, and declining global competitiveness.

Imports Rise as Local Industry Declines

One of the clearest symptoms of this trend is the dramatic rise in imports of finished plastic products. In 2024, imports surged by 29%, and Abiplast warns the growth could be even steeper in 2025 due to the full-year impact of the recent tariffs.

With raw materials becoming too expensive, many companies are abandoning local suppliers and opting to import ready-made products instead. This shift not only displaces domestic manufacturing jobs but also redirects economic value to foreign producers.

“When we suffocate the companies that transform materials and generate opportunities, we hand competitive advantage to other countries,” the group stated. “This benefits no one in the long run — not manufacturers, not workers, and certainly not consumers.” Recycling Technology

A Call for Strategic Reform

Abiplast is urging the federal government to reconsider its trade policy priorities. Rather than favoring raw material producers through blanket protectionist measures, they advocate for a more nuanced, strategic approach that fosters value-added manufacturing and job creation.

Rethinking the “Tariff Escalation” Model

“If the goal is to encourage innovation, sustainability, and competitiveness,” Abiplast argued, “then the government must rethink its reliance on permanent protection of raw inputs. Brazil must break free from policies that serve a few and harm the many.”

At the heart of Abiplast’s argument is the concept of “tariff escalation” — a trade strategy where raw materials are taxed less than finished goods.

In theory, this should encourage local processing and manufacturing. But in practice, Brazil’s implementation appears to be skewed, shielding raw input suppliers at the expense of downstream industries. Recycling Technology

An Uncomfortable Mirror: Brazil and the US

Interestingly, Abiplast highlighted the irony in how Brazilian officials often criticize U.S. trade policy under former President Donald Trump — yet fail to acknowledge similar tendencies at home.

While Trump’s proposed tariff hikes made global headlines, Brazil has quietly implemented its own version of a “tarifaco” (big tariff hit) over the years.

“The difference,” said Abiplast, “is that ours has lasted for decades and has gone largely unchallenged.”

This long-standing “silent tarifaco,” according to Abiplast, has quietly eroded Brazil’s industrial capacity, with many sectors choosing to suffer in silence rather than challenge established trade orthodoxy. Recycling Technology

A Lack of Response from the Government

At the time of writing, Brazil’s Ministry of Development, Industry, Trade and Services — which oversees trade policy through the Foreign Trade Chamber (Gecex) — had not issued a statement in response to Abiplast’s comments.

Similarly, Abiquim, the trade body representing domestic chemical giants like Braskem and Unipar, and a vocal supporter of the protectionist measures in question, has remained silent.

Time to Choose: Industrialization or Isolation?

Brazil faces a pivotal moment in its economic trajectory. On one hand, it can continue to protect raw material producers through high tariffs and ADDs. On the other, it can adopt a more balanced, forward-looking strategy that fosters a healthier, more competitive manufacturing ecosystem.

“We cannot accept that defending strategic inputs should devastate entire industries and destroy jobs,” Abiplast concluded. “Brazil needs a smart, inclusive industrial policy — not one built on permanent trade walls.”

Tackling the Global Waste Tire Crisis

Every year, an estimated 1.5 billion tires are discarded across the globe. These tires, made from complex mixtures of rubber, chemicals, and reinforcing agents, contribute significantly to environmental pollution. Disposed tires are notoriously difficult to break down, often ending up in landfills, illegal dumpsites, or incinerators — releasing toxins and consuming valuable space.

In response to this growing problem, researchers at the Department of Chemistry at KAIST (Korea Advanced Institute of Science and Technology) have developed a revolutionary recycling method. This new approach transforms used tires into high-purity chemical building blocks, paving the way for sustainable production of new rubber products and nylon fibers. Recycling Technology

A New Frontier in Chemical Recycling

The breakthrough comes from a research team led by Professor Soon Hyeok Hong. They have engineered a dual-catalyst system that selectively converts vulcanized rubber from used tires into two valuable chemicals: cyclopentene and cyclohexene. These are key ingredients in the production of rubber and nylon, respectively.

This novel chemical recycling method is poised to change the game. Unlike existing solutions such as mechanical grinding or pyrolysis — which are energy-intensive and yield low-quality products — KAIST’s system produces high-value, industrial-grade outputs under milder conditions and with higher selectivity.

The Science Behind the Innovation

Traditional tire recycling struggles primarily due to vulcanization — a process where sulfur bridges are formed between rubber chains, giving tires their resilience and heat resistance. This cross-linked structure is what makes tires durable, but also chemically stubborn, resisting breakdown under standard recycling processes. Recycling Technology

Here’s how the KAIST method works:

• Catalyst 1 breaks the strong molecular bonds in the vulcanized rubber, loosening the structure and making it more reactive.
• Catalyst 2 promotes a ring-closing reaction that efficiently forms cyclic alkenes like cyclopentene and cyclohexene.

This dual-catalysis approach achieves an impressive selectivity of 92% and a chemical yield of 82%, surpassing the limitations of current methods like pyrolysis.

? Why Pyrolysis Isn’t the Answer

For decades, the primary method for tire recycling has been pyrolysis, where rubber is thermally decomposed at temperatures ranging from 350°C to 800°C. While this method does recover fuel oils and gas, it suffers from several critical drawbacks:

• ? Low chemical selectivity: The process results in a complex mixture of hydrocarbons, many of which are unsuitable for further processing.
• ⚠️ High energy consumption: Maintaining such high temperatures demands large amounts of energy, increasing carbon emissions.
• ? Low-value output: The recovered products often need further refining and lack consistency in quality. Recycling Technology

In contrast, KAIST’s catalytic approach offers low-temperature precision and creates high-purity outputs that are directly useful in polymer manufacturing — a major leap forward in circular economy solutions.

From Waste to High-Value Industrial Materials

The significance of converting waste tires into cyclopentene and cyclohexene cannot be overstated:

• Cyclopentene is used as a monomer in specialty rubber production, enabling new tire and elastomer manufacturing.
• Cyclohexene is a key precursor in the production of nylon-6,6 fibers, widely used in textiles, automotive parts, and industrial materials.

By unlocking these compounds from used tires, KAIST’s technology supports a true circular economy, where waste becomes raw material for new industrial applications — reducing both landfill burden and reliance on fossil-derived inputs. Recycling Technology

♻️ Toward Scalable, Circular Solutions

Professor Hong and his team successfully tested the process on actual discarded tires, demonstrating the method’s compatibility with a variety of rubber materials — both synthetic and natural. The research is not limited to lab simulations, but has been validated in real-world conditions.

This versatility makes the technology a strong candidate for commercial scaling. Moreover, the mild conditions and efficient catalysts suggest the process could be integrated into existing chemical recycling or manufacturing infrastructure with minimal modification. Recycling Technology

“This research offers an innovative solution for the chemical recycling of waste tires,” said Professor Hong. “We aim to develop next-generation high-efficiency catalysts and lay the groundwork for commercialization to enhance economic feasibility. Ultimately, our goal is to contribute to solving the broader waste plastic problem through fundamental chemistry.”

Environmental and Economic Impacts

Widespread adoption of this technology could deliver multiple benefits on both environmental and economic fronts:

• ? Reduced landfill waste: Tires account for a large share of long-lived, non-degradable waste globally.
• ? Lower emissions: By avoiding energy-intensive pyrolysis, this method reduces carbon output during recycling.
• ? High-value output: Unlike pyrolysis oils, the recovered chemicals are industrially valuable and consistent in quality.
• ? Support for green manufacturing: The products feed directly into sustainable production of rubber and nylon goods. Recycling Technology

In a world increasingly focused on climate responsibility and material circularity, KAIST’s advancement comes at a pivotal time. Governments and corporations looking to meet carbon neutrality goals may find this innovation especially attractive for investment and policy support.

What’s Next: From Lab to Industry

While the technology has passed proof-of-concept testing, Professor Hong’s team is now focused on enhancing catalyst performance and pursuing industrial partnerships. Scaling the system to process millions of tires annually will require collaboration with tire manufacturers, petrochemical firms, and policymakers.

Among the next milestones:

• ? Development of next-gen catalysts with longer lifespan and higher turnover efficiency.
• ?️ Design of modular processing units for regional or industrial deployment.
• ? Collaboration with private-sector stakeholders for commercialization pilots.

The technology aligns with several UN Sustainable Development Goals (SDGs), including Responsible Consumption & Production (SDG 12) and Climate Action (SDG 13), making it an ideal candidate for global environmental funding. Recycling Technology

Final Thoughts