Camex approves additional quota for wheat imports from outside of Mercosul

The Executive Management Committee (Gecex), which is part of the Foreign Trade Chamber (Camex), approved an additional quota of 450,000 tons of wheat imports that can be exempted from the Common External Tariff (TEC) of 10% to countries outside Mercosur.  The additional quota may be used until November 17 of this year, if 85% of the volume of 750 thousand tons per year is filled. The decision will take effect from July 1.

According to the Brazilian Wheat Industry Association (Abitrigo), the government’s decision is in line with their own recommendation, where they had made the request in order to ensure the supply of grain to the Brazilian market in case Argentine wheat stopped being exported.

The following graph shows Brazilian wheat imports year by year:

Source: Antaq

“The concern of the milling industry, in addition to ensuring domestic supply, is to reduce the cost of imports affected by the devaluation of the real and the rise in Argentine wheat,” says the executive president of Abitrigo, Rubens Barbosa.

Currently, there is a 10% TEC tax, and Merchant Navy tax on wheat purchased from countries that do not belong to the trading bloc. Currently, Brazil imports about 60% – between 5-6 million tons – of the wheat needed for national milling.

See below the main origins of wheat imported by Brazil:

Table source: Antaq

Source of report: Estadão Content and Abratrigo

 

 

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