Last week, Brazil announced it has temporarily lifted its 18 percent tariff on all U.S. ethanol through the end of the year as a means of decreasing inflationary pressures.
“We are pleased to see the temporary elimination of the 18 percent tariff, which should improve access for Brazil’s ethanol consumers as well as help meet its own decarbonization goals. This is an issue we have been working on for a number of years in meetings and correspondence with officials from Washington to Brasilia,” said Ryan LeGrand, U.S Grains Council president and CEO in a joint statement with Growth Energy and the Renewable Fuels Association.
With the price of fuel rising, the Brazilian government believes there will be a reduction in gasoline prices in the country by lifting the ethanol tariff. Brazilian legislation ensures that each liter of gasoline must contain at least 25 percent ethanol.
The Council and its ethanol industry partners see this decision as an opportunity to continue discussions with Brazil in expanding the global use of ethanol. The organizations will continue to pursue a long-term, open and mutually beneficial ethanol trading relationship with Brazil as they work closely with the U.S. Department of Agriculture and the Office of the U.S. Trade Representative.
“Maintaining free and fair trade with one of our largest ethanol trading partners remains critical to the industry globally,” said Brian Healy, USGC director of global ethanol market development, “That remains our focus beyond the end of 2022.”
In addition to ethanol, the import tax on coffee, margarine, cheese, macaroni, soy oil and sugar was eliminated. The import tax on capital goods, including cell phones and computers, was reduced by 10 percent.
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.