Brazil is taking actions to protect its sugarcane-based ethanol producers from imports of corn-based ethanol from the US, energy minister Fernando Coelho Filho announced last week as cited by news agencies.
According to a resolution published in Brazil’s official gazette, importers of ethanol will now be required to comply with a rule applicable to domestic producers about maintaining stocks of supply. The move comes against the backdrop of a surge of US imports.
The minister said Brazil needs to create some limitations to protect the domestic industry but he is against the imposition of import tariffs as these could lead to retaliation.
Brazil's chamber of foreign trade, CAMEX, recently postponed a decision until June on whether to impose tariffs.
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Brazil seeks to limit US ethanol imports