Brazil’s Chamber of Foreign Trade (CAMEX) has postponed their decision on whether to reinstate tariffs on U.S. ethanol until next month. Brazilian sugarcane and ethanol producer associations had proposed reinstating the ethanol import tariffs following a recent surge in shipments coming in from the United States. Brazil was the top destination for U.S. ethanol in March, according to RFA, with nearly 30% of total market share.
The Renewable Fuels Association (RFA), Growth Energy and the U.S. Grains Council expressed their concern about the situation in a joint statement, citing the potential consequences facing Brazil should they re-instate the import tariff on U.S. ethanol.
RFA president and CEO Bob Dinneen says they are concerned that Brazil is even considering this as an option. “It would be a step backwards for Brazilian consumers who would see higher prices at the pump because some sugarcane producers want to maximize profitability and keep out competition,” said Dinneen. “And it stands in stark contrast to decades of rhetoric from Brazil about the need for free trade when it comes to biofuels.”
Listen to Dinneen’s comments here: RFA CEO Bob Dinneen comments on Brazil considering ethanol tariffs