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Brazil’s Implementation of Tariff Rate Quota for Wheat a Win for American Farmers

11/14/2019

Washington, DC – U.S. Trade Representative Robert Lighthizer and U.S. Secretary of Agriculture Sonny Perdue welcome Brazil’s implementation of an annual duty-free tariff rate quota (TRQ) of 750,000 metric tons (MT) of wheat imports.

For many years, Brazil failed to implement its obligation under the WTO to establish a TRQ for wheat. Brazil’s implementation of this TRQ fulfills a commitment made to President Trump by President Bolsonaro earlier this year and reflects a desire to deepen trade and economic ties between both countries.

“This solution to a long-standing problem is a result of the Administration’s advocacy for American farmers and will allow our wheat exporters to compete on a level playing field,” said Ambassador Lighthizer. “We look forward to increased exports of American wheat to Brazil.”

Secretary Perdue said, “American farmers can compete with anybody when given access to customers. This is why we are working tirelessly to knock down barriers to our exports, like high Brazilian tariffs on our wheat.  We are excited about the additional export opportunity U.S. wheat farmers will have with the opening of this TRQ. Exports are critical to the success of our farmers and the United States looks forward to once again having stable access to this important wheat market.”

Background:

Brazil committed to implementing a 750,000 MT duty-free TRQ for wheat imports when it acceded to the World Trade Organization in 1994.  The United States has long sought for Brazil to fulfill this commitment, culminating in a public announcement when Presidents Trump and Bolsonaro met in Washington in March.  The duty-free TRQ will provide stable and predictable access to a market where U.S. wheat exporters have long had ready Brazilian customers.  Prior to implementation of this TRQ, U.S. wheat typically entered Brazil at an applied 10 percent duty, in comparison to wheat from Brazil’s MERCOSUR customs union trade partners, particularly Argentina, which enters duty-free.

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