Brazil is set to open a tariff-rate quota on wheat imports, a potential opportunity for U.S. wheat producers. The quota will allow 750,000 metric tons of wheat to enter Brazil duty-free from outside of South America. The agreement comes 24 years after Brazil joined the World Trade Organization in 1995.
Both U.S. Wheat Associates and officials in the U.S. Government have worked for years to open the tariff rate quota and establish a more accessible market in Brazil for U.S. hard red winter wheat and soft red winter wheat.
USW President Steve Peterson said, “Brazil is a quality-focused wheat market and its flour millers recognize that U.S. wheat can help them to better meet their customers’ needs. “ Opening the TRQ gives their millers more consistent access to our wheat classes while still having an option to source from other countries if they choose to.” He added that’s how markets are supposed to work.
The Brazilian government is moving ahead on a formal process and date for implementing the TRQ.
U.S. Wheat Associates Chair Doug Goyings says, “This is a perfect example of how fulfilling commitments can work for all trading partners.”
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