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.
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.
“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,” said USW President Steve Peterson. “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.”
The Brazilian government is moving ahead on a formal process and date for implementing the TRQ. The agreement comes 24 years after Brazil joined the World Trade Organization in 1995.