This week, the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association jointly submitted comments to the Brazilian Chamber of Foreign Trade (CAMEX), urging Brazil to remove a tariff on ethanol imported from the United States, reported The Fence Post.
They pointed out that last October, ABICOM (the Brazil Association of fuel importers) formally asked the government to drop the ethanol duties because data showed that the tariff increased fuel costs for Brazilian consumers.
Currently, starting from January 1, 2024, there’s an 18% duty on all U.S. ethanol imports, while Brazilian ethanol coming into the U.S. faces no tariffs, the groups explained. The joint comments from the three organizations, submitted in Portuguese, emphasized the following:
“Given this significant difference in our historically strong trade relationship, we want to highlight that if Brazil doesn’t reconsider its current tariff policies, the U.S. industry will push for restrictions on Brazilian ethanol entering the U.S. market. Despite the potential benefits of new ethanol export markets for both countries, we want to make it clear that we won’t collaborate with Brazil on partnerships, technology transfer, or new ethanol uses like SAF unless the ethanol market is fully open for free trade. We strongly believe that permanently restoring duty-free access for ethanol is an opportunity to enhance bilateral relations and promote trade cooperation between Brazil and the United States.”
