A tweet from Brazilian Minister of Agriculture, Livestock and Supply Blairo Maggi late yesterday afternoon informed the world that Brazil’s foreign trade chamber has approved a 20 percent tariff on U.S. ethanol imports after a 600 million liter tariff rate quota.
The Renewable Fuels Association (RFA), U.S. Grains Council (USGC) and Growth Energy issued a joint statement on the decision.
“We are disappointed and discouraged to see the ruling out of Brazil today imposing a tariff on U.S. ethanol. Given the tremendous volume of information we provided to Brazil that demonstrated how misguided a tariff would be, it seemed politics prevailed today and Brazilian consumers lost. Imposing tariffs on U.S. ethanol imports will hurt Brazilian consumers by driving up their costs at the pump. Additionally, this 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.”
RFA CEO Bob Dinneen (@ethanolbob) had his own tweet in response to the decision:
“Brazil just hurt their own consumers by imposing a quota and tariff on US #ethanol – the lowest cost octane on the planet. #foolish”