Brazilian winter maize crop takes a relief on EU tariff schedule
Sustainability & Environmental Impact
Published Aug 10, 2020
The European Union has reduced its corn import tax to zero, from its previous 4.65 euros per tonne, according to a publication in the bloc's official newspaper on Friday.
It went effective first week of July and it considers the imports of rye and sorghum.
The tariff exemption would potentially benefit Brazil, the second global corn exporter, which sends important volumes to European countries. The second semester is the period of the year in which Brazilians ship most of the winter crop cereal. The EU had reintroduced an import tax on April 27, after a fall in prices in the US. At that time, prices reached the lowest levels in ten years, leaving import values below the EU's regulatory minimum.
The bloc then raised the tariff further on May 5, to 10.40 euros, from an initial rate of 5.27 euros, before reducing it to 4.65 euros on 23rd of June.
Global corn markets were under pressure this year, with the coronavirus epidemic affecting demand for fuels, including ethanol made from cereal, which absorbs large volumes of US production.
Since then, prices have rebounded, supported by a recovery in oil and freight prices, as well as from lower to steady estimates for US planting,