Brazil implements tariff rate quota for U.S. wheat
WASHINGTON, D.C. - This morning, Brazil announced the implementation of an annual duty-free tariff rate quota of 750,000 metric tons of wheat imports. In March of this year, U.S. Congressman Roger Marshall, M.D., wrote to U.S. Chief Agricultural Negotiator Ambassador Gregg Doud, encouraging him to work to remove this trade barrier with Brazil.
“This news from Brazil today is a big win for Kansas winter wheat producers, as this has been a trade problem for decades," Dr. Marshall said. "Brazil has a growing population with a growing economy and winter wheat producers need access to that market. Secretary Perdue, Ambassador Lighthizer, and Ambassador Doud did a fantastic job delivering for American agriculture, as President Trump promised. I have advocated for this action from Brazil since March, and as we continue to work with our trade partners around the world on establishing new agreements, I will continue to support the Trump Administration in their efforts.”
Brazil is the 4th largest wheat importer in the world but has imposed a 10 percent tariff on non-Mercosur wheat for over 20 years, while ignoring a World Trade Organization commitment to open the duty-free tariff rate quote on wheat. Kansas remains the U.S.'s top winter wheat-producing state and applauds today's announcement as another opportunity to develop new international markets and customers.
“The opening of the Brazilian TRQ represents a big win in challenging economic times for Kansas wheat farmers," said Taylor Williamson of Kansas Wheat. "Due to the efforts of U.S. Wheat Associates and USTR representatives working directly with Brazil on this issue, our farmers will now have the opportunity to compete on an even playing field, giving Brazilian millers and bakers high quality wheat that’s an ideal fit for their market."