Home Indiana Agriculture News Brazil Considers Removal of Barriers for U.S. Ethanol

Brazil Considers Removal of Barriers for U.S. Ethanol


Brazil may drop barriers on U.S. ethanol imports, as requested by the United States. Brazil is mulling over the idea to facilitate a bilateral trade deal. Brazil’s agriculture minister confirmed the discussion. However, a decision may not be made until the end of the month, according to Bloomberg News. Sources close to the talks say Brazil is considering renewing the current import quotas on U.S. ethanol, but with zero tariffs. A 20 percent tariff is set to take effect at the end of August on imports over the quota. Brazil enacted the tariff on U.S. ethanol two years ago for shipments over the quota of 600 million liters.

The tariffs followed a surge in U.S. ethanol imports that Brazil says flooded its market. The removal would be welcome news for U.S. farmers, now facing a loss of the $20 billion market in China, following sharp declines in 2018. Last year, Brazil was the top importer of U.S. corn-ethanol, importing more than 1.7 billion liters.