US cuts Brazil’s raw sugar import quota by 35.9% for fiscal 2027
The United States has allocated Brazil 100,000 metric tons raw value of raw sugar under its fiscal 2027 tariff-rate quota, down 35.9% from the previous cycle. The change reduces Brazil’s access to a key preferential market while larger allocations go to the Dominican Republic, the Philippines and Australia.
Brazilian allocation falls to 100,000 tons
The United States has sharply reduced Brazil’s allocation under its raw sugar tariff-rate quota for fiscal 2027, which begins on October 1, 2026. According to SpaceMoney, citing the Office of the US Trade Representative, Brazil will receive 100,000 metric tons raw value, or MTRV, a decline of 35.9% from the 155,990 MTRV allocated in the previous cycle.
The reduction affects preferential access to one of the principal destinations for Brazilian raw sugar. Imports within the tariff-rate quota receive more favorable treatment than volumes entering outside it, making the allocation commercially important for mills, exporters and US refiners. Brazil has historically held the largest country share, but the new distribution narrows that position and may require exporters to redirect some planned sales.
US maintains its overall WTO commitment
The total US raw sugar quota for 2026/27 is 1.117 million MTRV. The Foreign Agricultural Service of the US Department of Agriculture set that volume in line with the United States’ minimum commitment at the World Trade Organization. Of the total, 1.061 million MTRV has been distributed among supplying countries, while 55,990 MTRV remains in reserve for allocation before the beginning of October.
Several competing suppliers received substantial volumes. The Dominican Republic was allocated 189,340 MTRV, the Philippines 145,240 MTRV and Australia 89,290 MTRV. Guatemala received 51,640 MTRV and Argentina 46,260 MTRV. SpaceMoney reported that these countries maintained or increased their shares as Brazil’s allocation declined, changing the competitive balance among suppliers serving US refiners.
Other sugar categories receive separate quotas
The quota package also covers refined sugar and sugar-containing products. The total refined sugar quota was set at 22,000 MTRV, including 10,300 MTRV for Canada and 2,950 MTRV for Mexico. Another 7,090 MTRV will be administered on a first-come, first-served basis, while 1,660 MTRV is reserved for specialty sugar.
Sugar-containing products have a separate limit of 64,710 metric tons. Canada accounts for 59,250 metric tons of that volume, leaving 5,460 metric tons for other partners. Entry of the preferential volumes will be permitted from October 1, 2026, giving buyers and sellers a defined timetable for contracting and shipment planning.
Brazilian exporters face a market adjustment
The US decision does not reduce the overall raw sugar quota below the WTO minimum; it redistributes access among origins. For Brazil, the immediate issue is therefore country-specific rather than a contraction in total US quota demand. Brazilian mills and traders will have fewer tons eligible for preferential entry and may need to compete more aggressively in other destinations.
SpaceMoney identified Asia and Africa as possible alternative outlets and said the change could increase the importance of bilateral agreements. The commercial effect will also depend on international sugar prices and competition from other producers. Traders, mills and US refiners must now adjust their sales, procurement and logistics strategies before the new quota year opens.
