This week, the U.S. ethanol industry submitted comments to the Brazilian government seeking a permanent end to that country’s tariff on imported U.S. ethanol.
The Renewable Fuels Association, U.S. Grains Council and Growth Energy jointly submitted comments within the Brazilian Chamber of Foreign Trade (CAMEX) regarding the 18% Brazilian tariff on all incoming U.S. ethanol, while Brazilian ethanol imports enjoy free access within the U.S. market.
The comments were submitted in Portuguese in response to a formal request made in October 2023 by ABICOM, the Brazil association of fuel importers, to drop the ethanol duties because data showed the tariff raised fuel costs for domestic consumers.
“Considering this significant discrepancy in our historically productive commercial relationship between countries, we would like to stress that the U.S. industry will continue to advocate for restrictive measures to entry for Brazilian ethanol into the U.S., in the case that the Brazilian government does not rethink the current tariff policies…. Despite the promising opportunities emerging new ethanol export markets could bring to both countries, we stress that we are not willing to cooperate with Brazil in any possible partnerships, nor with technology transferring or within new uses for ethanol such as SAF, in case the market is not completely open for free trade for ethanol. 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.”
News reports out of Brazil on Wednesday quoted Agriculture Minister Carlos Fávaro at a sugar cane industry conference saying they will maintain the tariff to protect Brazilian producers.