Brazil Agrees to a Duty-Free Tariff Rate Quota for U.S. Wheat
Brazil was ranked as the fourth largest wheat importer in the world, and the largest importer in Latin America for 2017/18. Most wheat imports into the country are duty-free and originate from other Mercosur countries. All other wheat entering the country has been subject to a 10 percent tariff.
In 2008, 2013, and 2014 Brazil opened up the Tariff Rate Quota (TRQ) amid supply shortages. During those years, the U.S. accounted for more than 80 percent of wheat shipments coming from non-Mercosur countries.
Now, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the news that Brazil has agreed to implement a duty-free tariff rate quota that will open a level market for 750,000 metric tons of U.S. wheat per year.