Brazil's decision to buy 750,000 tons of US wheat without tariff concern

Brazil's decision to grant the United States a quota of 750,000 tons of wheat without imposing a tariff to fuel consumption in the north-east of the country, generated "uncertainty and warning" among the producers, mills and exporters of our country. These sectors currently sell between 80 and 90% of the wheat needs of the Brazilian market during the year.

Extra Mercosur wheat has to pay 10%. Brazil has already bought wheat on the North American market and, at the time, at the time of the previous government, when there were strong restrictions on domestic exports.

In a statement from the Ministry of Foreign Affairs, it was announced that the national government "follows this situation with special attention", and it was also confirmed that there were already discussions with the Brazilian authorities and other Mercosur partners, "to badyze the impact and consequences this measure could have on bilateral trade".

On that day, the Center for Exporters of Cereals and the Petroleum Industry, had expressed to the national authorities their concerns about this decision of Brazil and requested their intervention, given the measure announced yesterday in the United States , "negative for all". the Argentine wheat chain and a very bad sign for the process of Mercosur integration, "they said.

Opinion of the production and industry Molinera

David Hughes, president of the Argentine Association of Trigo (Argentrigo), had a dialogue with Infobae"This worries us because it is a competitor who enters Brazil with an authorized volume of 750 000 tonnes, an amount higher than in previous years, where he bought less than 400 000 tonnes. Great impact on the marketing and price of wheat because the components of the chain understand that it's something that happens every year. "

Hughes also commented: "There is a lot of work to be done.It is important to give Mercosur a commercial entity, it started with good intentions, but it has never been possible to do so. go forward to strengthen a region as big as powerful, agro-industrial exports ".

For its part, Diego Cifarelli, President of the Argentine Federation of Industry Molinera (FAIM) commented, "when a quota is granted as the one that Brazil has granted to the United States and that it is not clear that it is only once, many doubts are generated"

Cifarelli, meanwhile, said: "We must be careful, the dialogue between countries has always led us to a good port." We must also badyze the competitiveness of Argentine wheat in the ports of northeastern Brazil, where wheat would arrive. With a better price for America, this quota is part of a bilateral negotiation with the United States organized by Brazil to strengthen its ties. "