Brazil: New Opportunities for American Wheat Exports as Brazil Implements Duty-Free Quota

On November 5, 2019, Brazil announced its decision to finally implement a long-sought duty-free tariffrate quota (TRQ) for 750,000 metric tons (MT) of wheat imports from non-Mercosul countries. The measure was approved by Brazil’s inter-ministerial Foreign Trade Chamber, based on a proposal by the Ministry of Agriculture, Livestock, and Food Supply (MAPA). The quota represents 10 percent of Brazil’s wheat imports in MY 2018/2019 (October 2018-Novemebr 2019) and just 6.2 percent of Brazilian wheat consumption in the same period, according to production, supply, and distribution statistics from the U.S. Department of Agriculture (USDA). Outside of the TRQ, Brazil is expected to apply the 10-percent Mercosul common external tariff for all wheat imports coming from outside of the trade bloc.

Brazil: New Opportunities for American Wheat Exports as Brazil Implements Duty-Free Quota