This week, the U.S. Grains Council, Growth Energy and the Renewable Fuels Association, jointly submitted comments within the Brazilian Chamber of Foreign Trade (CAMEX) regarding the Brazilian tariff on imported U.S. ethanol.
Background:
In October 2023, ABICOM (the Brazil association of fuel importers) formally requested to drop the ethanol duties because data showed the tariff raised fuel costs for domestic consumers.
In anticipation of this open comment period, the U.S. Grains Council, Growth Energy and the Renewable Fuels Association mobilized a diverse set of stakeholders – including government agencies – to seek a permanent removal of the Brazilian tariff on imported U.S. ethanol. As of January 1, 2024, the current duty stands at 18% on all incoming U.S. ethanol, while Brazilian ethanol imported into the U.S. enjoys free access within the U.S. market.
Joint Comments:
The three organizations’ joint comments, submitted in Portuguese, included the following:
“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.”
Our organizations will continue to monitor the situation and report back to our respective members as we learn more after the comment period.
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About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.