Background

The Trump administration announced Nov. 14 Brazil’s implementation of an annual duty-free tariff-rate quota of 750,000 metric tons of wheat imports. A press release from the Office of the U.S. Trade Representative states that this represents Brazil’s implementation of an obligation it made when it joined the WTO in 1994 to establish a TRQ for wheat. USTR notes that previously U.S. wheat typically entered Brazil at an applied 10 percent duty, in comparison to wheat from Brazil’s Mercosur trade partners, particularly Argentina, which enters duty-free.

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