Brazil suspends tariff on US ethanol imports


Brazil’s tariff rate quota for ethanol has been extended for an additional 90 days, starting September 14. After expiring on August 31, a 20 percent tariff was temporarily applied to all U.S. ethanol. U.S. corn and ethanol groups expressed disappointment in the move, saying, “we would have preferred Brazil abandon its ethanol import tariffs entirely and resume its free trade posture on ethanol.”

The comments came in a joint statement from the U.S. Grains Council, Growth Energy, National Corn Growers Association, and the Renewable Fuels Association. Leaders of the organizations say the extension "serves neither Brazil's consumers nor the Brazilian government's own decarbonization goals."

However, the groups note they will use the extension to "aggressively pursue an open and mutually beneficial ethanol trading relationship with Brazil."

The exemption expired as both sides seek a new trade agreement regarding U.S. ethanol. The TRQ allows 198 million gallons of U.S. ethanol to avoid Brazil’s 20 percent tariff annually.

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