Brazil Upholds 18% Tariff on U.S. Ethanol

Cindy Zimmerman

Despite appeals from the U.S. government, ethanol exporters and importers, Brazil’s Ministry of the Economy (CAMEX) has chosen to continue its 18 percent tariff on U.S. ethanol.

U.S. ethanol interests, with support from the Brazil Association of Fuel Importers (ABICOM) and the U.S. government, previously submitted comments advocating for permanent tariff removal during a public consultation period that ended on April 11.

In a joint statement, the Renewable Fuels Association, U.S. Grains Council and Growth Energy, reacted to CAMEX’s decision.

“This tariff has placed a heavy financial burden on Brazilian consumers in a misdirected effort to protect the domestic Brazilian ethanol industry, which enjoys free and increasing access to the U.S. market. The U.S. industry remains united in seeking parity with Brazilian exports with reciprocal market access and will seek to take additional measures to rectify this unfair tariff treatment. We are committed to striving for fair and balanced trade in ethanol with Brazil.”

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