Brazil Targeting Elimination of Ten Percent Tariff on Corn Imports
The Agriculture Ministry of Brazil announced it is prepared to request the suspension of the country’s 10% import tariff on corn from non-Mercosur suppliers, including the U.S.
Tight supplies have corn prices approaching record levels in Brazil. And while the country’s pork and poultry producers are contending with high feed prices, low grain stocks have driven deals to deliver 500,000 tons of imported corn within the next few months. In addition, the country’s beef industry associations declared that corn imports could reach as high as 700,000 tons.
Despite concerns expressed by the country's Ag Minister about rising food prices, Brazil’s Revenue Service is opposed to the elimination of the tariff on the grounds that it will negatively affect the country’s revenue stream according to the Ministry.
If the suspension is approved, it would be implemented for a period of between six and eight months over which time it is expected that supply and demand would regulate. A suspension would also likely mean an uptick in Brazilian imports of U.S. corn after the country imported only 272 tons from North America last year.