September 5, 2007

Brazil Trade Ministry considers wheat tariff cuts

Brazil's Foreign Trade Ministry is considering a cut in wheat import taxes, the department's press office said Tuesday (September 4).

The National Foreign Trade Council, or Camex, will meet to discuss a cut to the 10 percent wheat import tax imposed on nations outside of the Southern Cone Common Market, or Mercosur.

The local wheat industry association, Abitrigo, asked that the tax be reduced following wheat import restrictions imposed by Argentina, Brazil's top wheat supplier.

A cut in the wheat import tariff would make US and Canadian wheat cheaper for Brazilian importers than current prices.

The final decision regarding import tariffs rests with Camex. No meeting date has been scheduled at this time, according to the press office. The last meeting was held on August 22.

Brazil is a net importer of wheat and is expected to harvest around 3.8 million tonnes of wheat in 2007, compared to local consumption needs of around 10.5 million tonnes.