Uruguay authorizes Brazil to use surplus beef quota for China

Brazilian President Luiz Inácio Lula da Silva announced that Uruguay has authorized Brazil to use part of its unused beef export quota to China. The agreement was reached during a bilateral meeting between Lula and Uruguayan President Yamandú Orsi in New York on the sidelines of the UN General Assembly.

Brazil has already reached its 2026 beef export limit of 1.106 million tons under China’s safeguard mechanism. Shipments exceeding this quota are subject to a 55% additional tariff, making them economically unviable for many exporters. The potential transfer of Uruguay’s surplus—estimated by some sources to be around 80,000 tons—could provide relief for the Brazilian meat industry.

However, the practical impact remains uncertain. The Brazilian Association of Beef Exporters (Abiec) noted that while the move is positive, its effect in 2026 may be limited due to the time required for negotiation, shipping, and transit. Furthermore, the measure still requires formal approval from Chinese authorities, such as the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GACC), to confirm the transfer of quota rights.