Brazil's Chamber of Foreign Trade, Camex, at the end of August approved the imposition of a 20% tariff on imports of ethanol beyond a quota of 600 million litres (158.5 million gallons) per year.

The measure is in response to a surge of imports from the US. Announcing the decision, the Brazilian agriculture ministry said that in January-June this year the country has imported 1.3 billion litres of ethanol, a rise of 320% compared to 2016.

The measure will be in place for two years after which it will be reviewed by Camex.

Brazilian sugarcane industry association Unica said the decision is in line with the demands of the sugar and ethanol sector.

Industry organisations in the US expressed disappointment at the move, which they said will stymie access to a large and growing market for US ethanol exports.

The Renewable Fuels Association (RFA), US Grains Council (USGC) and Growth Energy said in a joint statement that the action "goes against Brazil’s longstanding view that ethanol tariffs are inappropriate and will effectively close off an open and bilateral trading relationship that benefits all sides."

"We strongly urge this recommendation to be reversed as soon as possible and will work to that end through all available pathways," the organisations added.

 

Article by Renewables Now: Brazil approves 20% tariff on ethanol imports beyond quota