US Wheat Associates, a group representing the U.S. wheat industry, is seeking to take 80 percent of Brazil's 750,000-ton tariff-free wheat import quota, said Vince Peterson, the group's president.
Peterson is leading a delegation of U.S. wheat producers and traders visiting Brazilian wheat mills and food processors this week to assess sales potential for the coming months when the tariff-free quota for purchases from outside Mercosur is implemented.
Brazilian President Jair Bolsonaro announced the tariff-free quota during his visit to Washington last month. It also applies to other suppliers, including Russia.
Currently, any sale of wheat from the US to Brazil, one of the world's largest importers of the grain, is subject to a 10 percent import tariff, while Argentine sales enter duty-free, since the country is part of Mercosur.
“That makes a difference. Ten percent on a $250-a-ton commodity is a pretty significant differential for buyers,” Peterson told Reuters on Wednesday.
