Brazil delays decision on raising ethanol tariff imports from the U.S.

by Holly Demaree
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WASHINGTON, D.C., U.S. – For the second time this month, Brazil has decided to delay its decision on a pending proposal to impose a 20% tariff on U.S. ethanol imports.

The executive management committee of CAMEX, Brazil’s Chamber of Foreign Trade, announced the 30-day delay on July 25. 

The proposal would allow 500 million liters (132.1 million gallons) annually of U.S. ethanol imports before triggering the tariff.

The U.S. Grains Council, Renewable Fuels Association (RFA) and Growth Energy said imposing tariffs on U.S. ethanol imports would hurt Brazilian consumers by driving up the cost of gasoline.

“We are encouraged to see Brazil’s postponement on a decision regarding a pending proposal to impose tariffs on U.S. ethanol imports,” the groups said in a joint statement. “This action on U.S. ethanol imports will go against Brazil’s own longstanding view that ethanol tariffs are inappropriate and will harm the development of the global ethanol industry.”

All three groups reaffirmed their goal of vocalizing the long-standing impact the tariff could have on the global fuel supply industry. 

“We will continue to work toward educating Brazilian policymakers on how misguided this tariff would be, which would harm consumers by denying them access to the lowest cost, cleanest and highest-octane source of fuel in the world,” the groups said. “This proposal, if implemented, would have wide-ranging and long-standing impacts on both our industries and the global fuel supply.”
 
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