Brazil Approves Additional Wheat Import Quota Amid Supply Concerns

The Executive Management Committee (Gecex) of the Foreign Trade Chamber (Camex) has created an additional quota of 250,000 tonnes for wheat imports into Brazil with a zero tariff. This measure, approved in a meeting on Wednesday (September 18), will be in effect from September 25 to December 31 of this year.

According to a statement released by the Ministry of Development, Industry, Commerce, and Services (MDIC), 95% of the existing tariff-exempt quota of 750,000 tonnes had already been consumed up to that point.

The Brazilian Wheat Industry Association (Abitrigo) requested the new quota. The MDIC noted that the measure helps to prevent “potential supply shortages.” Initially, the entity sought to increase the quota from 750,000 to 1.25 million tonnes.

During the meeting, the National Association of the Tire Industry (Anip) also requested that the import tariff for “new rubber tires, used in passenger cars and racing cars” be temporarily raised from 16% to 25% for 12 months. The initial request was to increase the rate to 35% for two years. These products were included in the List of Temporary Tariff Increases due to Trade Imbalances.

However, Gecex denied Anip’s request to raise the tariff for imported truck and bus tires from 16% to 35%. Brazilian natural rubber producers also supported this increase due to a decline in domestic demand from rubber plantations linked to high tire imports from China.

There was pressure from truck drivers, who threatened to strike if the import tariff was raised. The rate was maintained at 16%.

Without a tariff increase, the tire and natural rubber production sectors aim to compel importers to meet their recycling quotas and work on a benchmark price for imports.

Source: Globo Rural

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