U.S. Trade Representative Robert Lighthizer and U.S. Secretary of Agriculture Sonny Perdue welcome Brazil's implementation of an annual tariff-free quota (TRQ) of 750,000 metric tons (MT) of wheat imports, the Department of Agriculture reported Thursday (14.11.2019) in a statement.
For many years, Brazil has failed to meet its obligation under the World Trade Organization (WTO) to establish a tariff rate quota for wheat. Brazil's implementation of this tariff rate quota fulfills the commitment made to President Trump by President Bolsonaro earlier this year and reflects the desire to deepen trade and economic ties between the two countries.
«This solution to a long-standing problem is the result of the Administration's advocacy for American farmers and will allow our wheat exporters to compete on a level playing field."Ambassador Lighthizer said. "AndWe hope to increase US wheat exports to Brazil«.
Secretary Perdue said: “American farmers can compete with anyone when given access to customers. That is why we are working tirelessly to break down barriers to our exports, such as the high Brazilian tariffs on our wheat. We are excited about the additional export opportunity that U.S. wheat producers 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. «.
What is the background?
Brazil committed to implementing a 750,000 MT duty-free tariff rate quota on wheat imports when it joined the WTO in 1994. The United States has consistently sought to hold Brazil to this commitment, culminating in a public announcement when Presidents Trump and Bolsonaro met in Washington in March 2019.
The duty-free TRQ will provide stable and predictable access to a market where U.S. wheat exporters have always had ready Brazilian customers.
Prior to the implementation of this TRQ, U.S. wheat typically entered Brazil with a 10 percent applied tariff, compared to wheat from Brazil's MERCOSUR customs union trading partners, particularly Argentina, which enters duty-free.
? BREAKING: @USTradeRep & @SecretarySonny welcome Brazil's implementation of an annual duty-free tariff rate quota of 750,000 metric tons of wheat imports, which will provide stable & predictable access to the market https://t.co/UcRYq3ynvm pic.twitter.com/kQDa924KfU
— Dept. of Agriculture (@USDA) November 14, 2019
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