Australia and Brazil compete for unused Uruguay beef quota to China

Australia and Brazil are seeking access to Uruguay’s unused beef quota for China after both countries exhausted their own 2026 allocations. Any shipments above the quota are subject to an additional 55% safeguard tariff in China.

Australia received a 205 thsd ton quota for 2026 and had already filled it by late June. Uruguay, by contrast, was allocated 324 thsd tons, while its shipments to China in 2025 were around 190 thsd tons, leaving a substantial volume unused.

Australia had earlier approached Uruguay about transferring part of the unused quota. According to market participants, Uruguay is open to discussing such an arrangement, while Brazil is also showing interest in securing additional access.

It remains unclear how much quota could be reallocated and what mechanism would be used. Time is also limited, as the current quotas reset on January 1, 2027, meaning any agreement would need to be implemented within the next few months.

For Australia, additional quota could help ease the current shipment bottleneck and reduce pressure on its 2027 allocation. Such a mechanism could become even more important next season if Australia and Brazil again fill their China quotas quickly.

Tags: Brazil, Beef cattle, Uruguay, Australia, China