Brazil’s punitive ethanol tariff regime and restrictive regulations demonstrate that the country is clearly not committed to fair and reciprocal trade in ethanol, the Renewable Fuels Association said in comments sent Monday evening to the U.S. Trade Representative, which is investigating Brazil’s trade practices.
“Brazil’s tariff rates have no doubt had a demonstrable impact on U.S. ethanol exports,” wrote RFA President and CEO Geoff Cooper. “While Brazil was once the top export market for U.S. ethanol, the imposition of tariffs (without a duty-free quota) in recent years has essentially closed the market. To make matters worse, while U.S. ethanol faces a significant 18 percent import duty, Brazilian ethanol enters the U.S. market with just a 2.5 percent ad valorem duty, granting Brazilian producers preferential access and market competitiveness in America.”
As a result of Brazil’s volatile application of tariff rates in recent years, U.S. fuel ethanol exports to Brazil fell to zero in 2023 and just $43 million in 2024. In 2024, exports to Brazil accounted for just 1.3 percent of total U.S. ethanol exports, after accounting for approximately one-third of total U.S. exports as recently as 2018.
Click here for RFA’s full comments.
