Brazil lowers tariff on ethanol imports

Source: By Agri-Pulse • Posted: Tuesday, November 16, 2021

Brazil, in an effort to curb inflation, is cutting import tariffs on ethanol imports, but it’s unclear if the move will prompt the country to buy more from the U.S. As of Nov. 5, the Brazilian tariff dropped from 20% to 18%, according to a report by USDA’s Foreign Agricultural Service. The U.S. had become accustomed to selling ethanol tariff-free to Brazil until last year. Brazil erected the 20% tariff in 2017 in an effort to shield domestic producers, but the country also set up a 198-million-gallon tariff rate quota. That quota expired last year, and the countries’ negotiators failed to reach a deal to reinstate it. Brazil also cut tariffs on other ag commodity imports, such as beef, blueberries, cheese and whey. The tariff reductions are temporary and are scheduled to remain in effect through Dec. 31, 202