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In submission to Trump, the government may implement a tariff-free wheat quota that would benefit the US.

Brazil could implement a tariff-free import quota of 750 tons of American wheat annually, in yet another act of submission to the United States government, which would benefit from the opening of the Brazilian market; most of the wheat that Brazil buys from abroad comes from Argentina, in addition to some from Uruguay and Paraguay; in the case of these three countries, there are no import tariffs, within the rules of Mercosur; for other nations, Brazil applies a 10% tariff.

In submission to Trump, the government may implement a tariff-free wheat quota that would benefit the US (Photo: Reuters)

247 - Brazil may implement a tariff-free import quota of 750 tons of American wheat annually, in a gesture to the United States government, which would benefit from the opening of the Brazilian market. information It's from the Folha de S.Paulo newspaper. 

This volume represents about 10% of the wheat imported by Brazil and is part of an agreement from the Uruguay Round of negotiations at the WTO (World Trade Organization), in which Brazil committed to importing 750 tons annually without tariffs, but never fulfilled its commitment.

On the eve of President Jair Bolsonaro's visit to Washington, senators from wheat-producing states sent a request to President Donald Trump to put the issue of wheat on the table.

Most of the wheat that Brazil buys from abroad comes from Argentina, as well as some from Uruguay and Paraguay. In the case of these three countries, there are no import tariffs, within the rules of Mercosur. For other nations, Brazil applies a 10% tariff.

 The report also states that the quota agreed upon with the WTO applies to any country, but Brazil's decision to implement it seems to have a specific target, since the US is typically the country that exports the largest volumes outside of Mercosur.

In a letter sent to Trump, senators from wheat-producing states estimate that if Brazil implements the quota, US wheat exports could increase by between US$75 million and US$120 million per year, depending on how much the country manages to sell.