Industry encouraged by Brazil delaying U.S. ethanol import tariff

Groups say tariffs would hurt Brazilian consumers.

The Executive Management Committee of CAMEX, Brazil’s Chamber of Foreign Trade, announced July 25 a 30-day delay of a decision on a pending proposal to impose a 20% tariff on U.S. ethanol imports. The proposal would allow 500 million liters (132.1 million gal.) of U.S. ethanol imports annually before triggering the tariff.

Industry leaders including U.S. Grains Council president and chief executive officer Tom Sleight, Renewable Fuels Assn. president and CEO Bob Dinneen and Growth Energy CEO Emily Skor released a statement following Brazil’s announcement.

“We are encouraged to see Brazil’s postponement on a decision regarding a pending proposal to impose tariffs on U.S. ethanol imports,” they said. “This decision should not be taken lightly, as imposing tariffs on U.S. ethanol imports will hurt Brazilian consumers by driving up their costs at the pump.”

Additionally, they said the action on U.S. ethanol imports would go against Brazil’s own long-standing view that ethanol tariffs are inappropriate and will harm the development of the global ethanol industry.

"We will continue to work towards educating Brazilian policy-makers on how misguided this tariff would be, which would harm consumers by denying them access to the lowest-cost, cleanest and highest-octane source of fuel in the world. This proposal, if implemented, would have wide-ranging and long-standing impacts on both our industries and the global fuel supply,” the industry leaders said.

TAGS: Business
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