Brazil has decided to maintain an 18% import tariff on ethanol from the United States, despite calls from U.S. industry groups and lawmakers to remove the duty. The Brazilian government's trade body, CAMEX, upheld the tariff after a public consultation period, citing the need to protect its domestic ethanol industry.
This move comes as a disappointment to the U.S. ethanol sector, which has argued that the tariff places a heavy financial burden on Brazilian consumers and disrupts the historically productive trade relationship between the two countries. The U.S. industry has warned that it may advocate for restrictive measures on Brazilian ethanol imports if the tariff remains in place, underscoring the ongoing tensions in the bilateral ethanol trade.
Citations:
[1] https://www.world-grain.com/articles/20127-brazil-upholds-18-tariff-on-us-ethanol-imports
[2] https://www.agri-pulse.com/articles/20949-brazilian-tariffs-front-of-mind-for-us-ethanol-industry
[3] https://ethanolrfa.org/media-and-news/category/news-releases/article/2024/04/ethanol-industry-submits-joint-comments-seeking-permanent-removal-of-brazilian-tariff-on-imported-u-s-ethanol
[4] https://www.dtnpf.com/agriculture/web/ag/blogs/ethanol-blog/blog-post/2024/06/20/brazil-trade-body-upholds-tariff-us
[5] https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/agriculture/020123-brazil-reinstates-ethanol-import-tariff-making-us-product-even-less-viable