Business Notes TRADE

For more than 40 years, Brazilians have had to settle for domestically built radios, TVs and other high-priced, often poorly made and outmoded goods. To protect its industries, Brazil has traditionally barred imports that could compete with local products. But the government of President Fernando Collor de Mello has shattered that custom with a plan to remove import bans and cut tariffs on virtually everything from cars to clothing. Said Economy Minister Zelia Cardoso de Mello: "These measures represent a revolution, a profound break with the past."

The moves were the latest reforms by Collor, who froze most Brazilian bank deposits in March within hours of taking office. That painful step helped slash Brazil's monthly inflation rate from 84% in March to 10% in June.

Brazil will lower tariffs that now run as high as 105% of an item's price to a maximum 40% by 1994. The gradual reduction is aimed at preventing a sudden wave of cheap foreign goods from driving companies out of business. Says Ibrahim Eris, president of Brazil's central bank: "In the long run, it is in the interest of Brazil that we have a more competitive economy."

Commerce Secretary Robert Mosbacher applauded the new policy and estimated ( that Collor's bold moves could boost U.S.-Brazilian trade, currently $13 billion annually, to more than $50 billion by 1995.