Brazil fills its China beef quota, facing a 67% tariff until January

Brazil has officially filled its 2026 China beef export quota, so its shipments for the next three months face an extra 55 percent safeguard tariff, Beef Central reports. Australia filled its own quota in June.

From 1 October until the quota resets on 1 January, Brazilian beef entering China pays the 55 percent safeguard tariff, meant to protect China's own beef industry, on top of the 12 percent most-favoured-nation tariff, a total of 67 percent. Brazil took only 20 days to go from 80 to 90 percent of its 1.106 million tonne quota but another 50 days to fill it; some put the delay down to Brazil using part of Uruguay's unused quota, while others believe China let some shipments in tariff-free. No one has given a clear explanation.

The risk for Australia is that Brazil pushes more beef into other markets, mainly the United States and Canada and possibly Japan and Korea. So far this year Australia has supplied 30.1 percent of US beef trimmings imports, Brazil 21.7 percent, New Zealand 19.4 percent and Uruguay 8.8 percent. Brazil's restricted period is shorter than Australia's: its first 2027 tariff-free cargoes could sail in about eight weeks to arrive after 1 January, and an Australian export source expects record January shipments to China from both countries.

Separately, Argentina's economy minister Luis Caputo announced that Argentina has been granted access to Japan for its beef for the first time in about 20 years, under sanitary rules for beef from zones free of foot-and-mouth disease where vaccination is used. Beef Central said Japan had yet to acknowledge the deal officially.

"This is a historic agreement," Caputo said. Argentina first sought access in 2006; beef from Patagonia, recognised as free of the disease without vaccination, has been allowed since 2018, but little trade followed. The deal also covers beef tongue, prized in Japan. Exports can begin after Japanese authorities audit Argentina's sanitary system and approve plants.

Japan imports more than US$3 billion of beef a year, but its 38.5 percent tariff on Argentine beef will limit the gain; Australia pays around 24 percent under its free trade agreement. The report was written by Jon Condon.

Photo: Eduardo Ferraz Pacheco de Castro e Sebastião de Oliveira / Wikimedia Commons (CC0)

Source: Beef Central