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Brazil Imposes Tariff on U.S. Ethanol


In an effort to protect local producers, the Brazilian government has approved plans to impose a 20 percent tariff on U.S. ethanol imports after a 600 million liter tariff rate quota (TRQ).

Brazilian Minister of Agriculture, Livestock and Supply Blairo Maggi tweeted this afternoon that CAMEX, Brazil’s Chamber of Foreign Trade, approved a recommendation to impose the tariff, after delaying a decision earlier this summer. The tariff is expected to be enforced after the next few days-after official publication-and be in place for the next two years.

In response, Renewable Fuels Association (RFA) President and CEO Bob Dinneen tweeted: Brazil just hurt their own consumers by imposing a quota and tariff on US #ethanol – the lowest cost octane on the planet. #foolish

Dinneen also joined with U.S. Grains Council (USGC) President and CEO Tom Sleight and Growth Energy CEO Emily Skor to issue the following statement:

“We are disappointed and discouraged to see the ruling out of Brazil today imposing a tariff on U.S. ethanol. 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. 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. We strongly urge this recommendation to be reversed as soon as possible and will work to that end through all available pathways.”

Source: Agri-Pulse

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