Brazil Imposes 20% Tariff on US Ethanol Exports

The talks to open up Brazil's market to U.S. ethanol (see 2010200018) have failed, domestic ethanol groups said, calling it “a dramatic turn in our bilateral trade relationship.” The U.S. Grains Council, the Renewable Fuels Association, the National Corn Growers Association and Growth Energy put out a joint statement Dec. 16: “Brazilian ethanol receives unfettered access into the U.S. market, while U.S. producers are denied reciprocal market access due to a restrictive import tariff designed solely to make U.S. product less competitive,” the groups said. “We urge the incoming [Joe] Biden Administration to respond with strength, leveraging various U.S. government tools and authorities to make it clear that protectionist barriers are unacceptable.” They said that Brazil exported about 96 million gallons of ethanol to the U.S. since May, and the U.S. has only exported about 4 million gallons under the previous tariff rate quota regime.