ethanol
 
WASHINGTON, D.C., U.S. – The Brazilian Minister of Agriculture, Livestock and Supply Blairo Maggi tweeted on Aug. 23 that CAMEX, Brazil’s Chamber of Foreign Trade, has approved a recommendation to impose a 20% tariff on U.S. ethanol imports after a 600-million-liter tariff rate quota. Local media are reporting this TRQ would be in place for the following two years. 

In July, the Executive Management Committee of CAMEX, Brazil’s Chamber of Foreign Trade, delayed deciding on a proposal that would impose a tariff of up to 17% on the nation’s imports of U.S. ethanol.

The U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy said the tariff would hurt Brazilian consumers by driving up the cost of gasoline and were pleased with delay but are now disappointed in the decision. 

“We are disappointed and discouraged to see the ruling out of Brazil today imposing a tariff on U.S. ethanol,” the U.S. ethanol groups said. “Given the tremendous volume of information we provided to Brazil that demonstrated how misguided a tariff would be, it seemed politics prevailed today and Brazilian consumers lost. Imposing tariffs on U.S. ethanol imports will hurt Brazilian consumers by driving up their costs at the pump. 

The groups would like to see the decision reversed to avoid any current or future trade between the United States and Brazil. 

“Additionally, this action goes against Brazil’s longstanding view that ethanol tariffs are inappropriate and will effectively close off an open and bilateral trading relationship that benefits all sides,” the groups said. “We strongly urge this recommendation to be reversed as soon as possible and will work to that end through all available pathways.”