After meeting with Trump, Bolsonaro granted the United States an annual quota of 750,000 tonnes of duty-free wheat

Brazil's decision to endow the United States with an annual quota of 750,000 tonnes of duty-free wheat has allowed them access to the grain chain sectors alerted by their market in Argentina.

In the country, the main supplier of wheat in Brazil, the reactions range from the rejection of this measure, which Donald Trump received today after having received in the White House his partner, Jair Bolsonaro, to the voices that believe it will take time to implement and several filters, even in Mercosur and the World Trade Organization (WTO). In this context, some do not see with concern this advance that they consider "isolated". Others, on the other hand, see it because, according to the White House, the quota will be annual.

According to a survey conducted by Eugenio Irazuegui of Zeni, Brazil increased its wheat imports by 16.9 percent to 7.04 million tons. It was the highest volume in five years.

Argentina placed some 5.94 million tonnes and covered 84.4% of Brazil's purchases. Second and third places were occupied by Paraguay and the United States, with shipments of 339,844 tonnes (4.8%) and 273,631 tonnes (3.9%), respectively.

They then completed Canada's list with 197,282 tonnes (2.8%) and the Philippines with 109,792 tonnes. (1.6%). According to Irazuegui, the remaining 177,721 tons were loaded with cargoes from Uruguay and ships of Thai origin.

"This is something I do not agree with Brazil, because here (for Argentina) it has volume, quality and market price, I do not understand why look for other latitudes", said Diego Cifarelli, president of the Federation. Argentina's Molinera Industry (FAIM).

Cifarelli pointed out that after a long time the trade balance with the neighboring country had been balanced and that wheat was fundamental.

It should be recalled that wheat benefits from Mercosur tariff protection of 10%. On other occasions, when Argentina did not have enough goods because of the obstacles faced by the pre-export government, the neighboring country resorted to quotas to facilitate entry goods of other origins, such as the United States.

According to Reuters, after the Trump-Bolsonaro meeting, Brazil will set up a 750,000-tonne quota without customs duties. The two countries also agreed on technical conditions for the import of pork from the United States. in Brazil. In addition, US health authorities will visit the neighboring country, which could be another step for Brazil, which wants to sell beef to the United States again. It should be remembered that in 2017, the United States suspended imports after the case of adulterated meat in Brazilian refrigerators.

"We are witnessing the evolution of the regime," said Gustavo Idígoras, president of the Chamber of the Petroleum Industry and Center for Exporters of Cereals (Ciara-Cec). According to Idígoras, since there is no Mercosur quota for this type of product, the issue should go through the regional bloc and even the WTO for the same reason.

"Quota setting is a long and not-so-simple process," said Idigoras, adding, "We totally reject Brazil's bid in the US Any quota Brazil wants to give must be concluded with Argentina ".

In 2017, Brazil's industrial mills wanted to open a quota of 750,000 additional tons of mercosur. At the time, the Argentine government managed to stop this movement.

According to Zeni, US wheat exports to Brazil have fallen "remarkably recently". From the record sales volume of 3.48 million tonnes in 2013, when Argentina was limited to export, the volume had increased to 1.23 million in 2016 and 340,088 tonnes in 2017. Between -time, as it was said, they were 273 631 tons in 2018..

"Today, this quota should not be a problem for Argentina, because Brazil has to import 7 million tonnes, which means that 750,000 is not a problem," he said. Javier Buján, of Kimei Cereales. For Buján, this American wheat could go further north of Brazil than the rest of the country.

However, he felt that the "signal" was not good for Argentina. "Of course, if you are a Brazilian sucker, you try to use the news to your advantage and"
syringe more to the Argentine offer. The question is how the review of MERCOSUR's additional tariffs will go beyond this specific quota in the future, "he said.