WASHINGTON, DC, US — US ethanol groups and other stakeholders want Brazil to permanently remove the tariff on imported US ethanol.

The groups submitted comments to the Brazilian Chamber of Foreign Trade (CAMEX) about the tariff, which as of Jan. 1, stands at 18% on all incoming US ethanol.

In contrast, Brazilian ethanol imported into the United States has free access into the US market, the groups said.

“Considering this significant discrepancy in our historically productive commercial relationship between countries, we would like to stress that the US industry will continue to advocate for restrictive measures to entry for Brazilian ethanol into the US, in the case that the Brazilian government does not rethink the current tariff policies,” said the US Grains Council, Growth Energy and the Renewable Fuels Association in the comments.

They went on to say the industry is not willing to cooperate with Brazil in “any possible partnerships, nor with technology transferring or within new uses for ethanol such as SAF.”

“We strongly consider the permanent reinstatement of the duty-free access for ethanol as a window of opportunity to strengthen the bilateral agenda and stimulate trade cooperation between Brazil and the United States,” the FAS said.

The groups prepared the statement in anticipation of the comment period following ABICOM’s (the Brazil association of fuel importers) October 2023 request to drop the ethanol duties because data showed the tariff raised fuel costs for domestic consumers.

The groups said they will continue to monitor the situation and will report back as they learn more following the comment period.