Brazil Temporarily Removes Ethanol Tariffs

Wisconsin Ag Connection
USAgNet - 04/09/2010

In an effort to put pressure on the U.S. amidst international trade negotiations, the Brazilian government announced a temporary suspension of tariffs on ethanol imports. The move, which would eliminate the nation's 20 percent tariff on imported ethanol through the end of 2011, comes in chorus with an announced settlement between the U.S. and Brazil over their ongoing cotton dispute. The U.S. currently has an ethanol tariff of 54 cents per gallon and a 2.5 percent ad valorem tax.

Over recent years, the Brazilian ethanol industry, in particular, the Brazilian Sugarcane Industry Association (UNICA), has been extremely vocal against the U.S. tariffs on the imported biofuel.

Joel Valasco, UNICA's Chief Representative for North America, challenges the US to make similar concessions.

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