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U.S. Wheat looking to capitalize on Brazil tariff-free import quota

U.S. Wheat Associates is looking to capitalize on Brazil’s tariff-free import quota.

President Vince Peterson tells Brownfield President Trump met with the Brazilian president last month to discuss trade.

“They announced the opening of a 750,000 ton tariff rate quota for wheat imports into Brazil. So that’s obviously a subject that is sort of on the plate front and center.”

Currently, U.S. wheat exports to Brazil are subject to a 10 percent tariff.

Peterson describes the process of implementing the tariff-free quota as stymied.

“The President has announced it, their Ministry of Agriculture reaffirmed it the next day, and right now i would characterize it as in the administrative process in Brazil. They’ve got a few things they have to do legally to put that into process.”

Peterson sees Brazil as an excellent long-term market for U.S. wheat.  He says without the tariff exports could climb to levels not seen since the 1960’s and 70’s.