Brazil’s government will reportedly discuss a proposal today to temporarily eliminate tariffs on corn and soybean imports from countries outside the Mercosur trading bloc, according to a source with direct knowledge of the matter cited by Reuters.
This has been a rumored possibility for some time, with record-setting prices for both commodities and dwindling supplies problematic for crushers, livestock producers and other domestic users of the commodities.
Last month, the country decided to cut tariffs on rice imports to 0% through year-end. Currently, the tariff on imports of corn and soybeans from origins outside Mercosur is at 8%. Any such move would likely generate some backlash from members of the Mercosur bloc.