Brazil will implement a duty-free tariff rate quota for U.S. wheat. This gives U.S. wheat growers access to about 28 million bushels of opportunity, according to U.S. Wheat Associates Vice-President of Communications Steve Mercer. “Argentina is where Brazil buys most of their wheat. Everything else has had a 10 percent duty on it,” explains Mercer. “Most of the time, Argentina can provide the wheat needed, but they’ve never actually opened this tariff rate quota even though they agreed to it when they joined the WTO.” It’s unknown how soon this will go into effect. There’s hope it could happen this year, but Mercer says the industry won’t know for a while. “It will likely end up being commercial sales that go into the next marketing year starting June 1. We may be able to move wheat out in May. We hope it’s immediate, but we don’t know yet.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.