U.S. and Brazil Move Toward More Agricultural Trade

(WASHINGTON, DC) President Donald Trump played host to Brazilian President Jair Bolsonaro Tuesday at the White House in an effort to bring the two countries closer together. Currently, the United States enjoys a $27 billion trade surplus with the South American nation, but both leaders made commitments to reduce trade barriers and facilitate investment across a range of industries – including agriculture. Brazil agreed to implement a tariff rate quota, which allows for the purchase of 750,000 tons of U.S. wheat annually and will also open its borders to American pork, though not immediately. The U.S. also wanted assurances that U.S. ethanol can continue to flow into Brazil when tariff-rate quotas end in June. The Brazilians appear to be holding that card in exchange for greater market access for their sugar in the U.S. market. The U.S. also agreed to begin the process of reopening its market to Brazilian beef imports, though not immediately.