US cuts Brazil sugar import quota by 55,900 tonnes for 2027
Brazilian sugar producers face reduced preferential access to the US market, with northeastern mills expected to seek alternative export destinations.
USA – The United States has reduced Brazil’s raw sugar import quota for fiscal year 2027 by about 55,900 tonnes, cutting the volume eligible for preferential tariffs to 100,000 tonnes.
The quota takes effect on October 1, 2026, and runs through September 30, 2027.
The reduction will primarily affect sugar mills in northeastern Brazil, which are entitled under Brazilian rules to use the preferential tariff quota for exports to the US. The new allocation is about one-third below the volume available in recent years.
Sugar exported beyond the quota remains subject to a tariff of about $340 per tonne, making additional shipments to the US less competitive. Brazilian producers also generally receive higher prices in the US market than in alternative destinations.
Renato Cunha, chairman of sugar, ethanol and bioenergy producers association Novabio, estimated that northeastern Brazil could lose at least $30 million in sugar export revenue following the quota reduction.
“We won’t lose all of that revenue because we will look for other destinations, but they don’t pay the same price,” Cunha said.
He described the measure as an abrupt disruption of a quota recognized by the WTO [World Trade Organization].
Brazilian sugar producers could seek alternative destinations, including the European Union, which has opened a 180,000-tonne sugar import quota under its trade agreement with Mercosur.
“We are going to start exporting now,” Cunha said, referring to shipments to alternative markets. The sugarcane harvesting season for northeastern Brazilian mills begins between August and September.
Despite the reduction, the measure is expected to have a limited effect on Brazil’s overall sugar trade because the US accounts for about 1% of the country’s total sugar exports.
China remains Brazil’s largest sugar market, accounting for between 10% and 15% of Brazilian sugar exports annually since 2020.
The US Office of the Trade Representative (USTR) said it had reallocated the roughly 55,000 tonnes removed from Brazil’s allocation among 28 other countries. Brazil’s 2027 quota was set at 100,000 metric tons in raw value, compared with 155,993 metric tons in fiscal 2026.
India was among the countries receiving preferential access. For countries that are net sugar importers, the allocation will depend on receipt of the required origin verification documents.
