March 21, 2007

Brazilian wheat producers demand removal of duty imports
 

Brazil's Wheat Industries Association (Abitrigo) is demanding the removal on wheat import tax for non-member countries in South American trade bloc Mercosur in order to reduce Brazil's dependence on Argentine wheat supplies, reports Brazilian news portal Global 21.

Abitrigo has questioned the Brazilian government's intrusion against Argentine wheat and flour policies to which the association has accused the country of unfair exploitation of its advantages in wheat production which has undermined the competitiveness of Brazil's wheat industry.

Abitrigo's latest demand follows the March 15 decision of Argentine government to resume the country's flour exports, while maintaining its suspension on Argentine wheat exports. In this case, Brazil might be forced to buy Argentine flour while its own wheat mills would remain indolent due to raw materials shortage.

Argentina suspended its wheat and flour exports on March 8 with the argument to guarantee its domestic offer of the said products.

Argentina is Brazil's main wheat supplier as the country imported 6.6 million tonnes of Argentine wheat in 2006. With an annual demand of 10 million tonnes, Brazil's wheat imports are seen to significantly increase in 2007.