Argentina has stopped 1.6 million tons of sold wheat from leaving the country in order to secure domestic food supply leaving Brazil to depend entirely on U.S. wheat. According to Brazil’s agriculture ministry between January and November 2013 Brazil purchased more wheat from the U.S. than from Argentina, its usual supplier. Brazilian millers imported 3 million tons of U.S. wheat between January and November 2013 as opposed to only 54,000 tons the previous year. According to the U.S. Department of Agriculture (USDA) 236,300 tons of U.S. wheat were shipped to Brazil in December alone. Because both Brazil and Argentina are members of the trade bloc Mercosur, Brazil allows Argentinian wheat to be imported tariff-free. However, because of the trade restrictions imposed by Argentina, Brazilian millers are having to wait 40 days for wheat to arrive from the U.S. and having to pay a 10% tariff and much higher freight costs.
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