SÃO PAULO, BRAZIL — A new tariff-free wheat import quota of 750,000 tonnes is expected to be introduced in Brazil, starting from 2020, Reuters reported, citing the country’s wheat industry group Abitrigo.
Earlier this year, Brazil announced the tariff-free wheat import quota during President Jair Bolsonaro’s visit to the United States.
Brazil is a net importer of wheat, bringing in 3.9 million tonnes this year through July. Most of the wheat comes from Argentina given its proximity and the fact it does not pay the 10% import tariff as a member of the Mercosur trade bloc.
“We are following the issue closely in the Economy Ministry,” Rubens Barbosa, Abitrigo president, told reporters at a press conference in São Paulo. “By the end of the year the quota should be regulated, which will allow for imports from any country at zero tariff.”
Other nations that could benefit from the tariff-free quota include Canada and Russia, Reuters said.