News & Ideas

ACE: Brazil’s Inequitable Treatment of Ethanol Another Demand Hit for Producers

Sioux Falls, SD (December 16, 2020) – This week the 90-day extension of the tariff rate quota (TRQ) on Brazilian imports of U.S. ethanol expired, imposing a 20 percent tariff on all U.S. fuel ethanol imports. American Coalition for Ethanol (ACE) CEO Brian Jennings expressed his disappointment in the Brazilian government’s decision by issuing the following reaction:

“We were never big fans of Brazil’s TRQ, but at least it allowed some ethanol into the country tariff-free. While our border remains completely open to imports from Brazil, their tariff virtually closes the door to us. It wasn’t that long ago that Brazil was the top export destination for U.S. ethanol. Now we are experiencing demand destruction at home and abroad. One of the most urgent priorities for USTR nominee Katherine Tai will be to sit down with her Brazilian counterparts to try and negotiate a much better outcome. Sanity must be restored to Brazil’s protectionist policy toward ethanol trade.”


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