Brazil has made no decision on whether to renew the import tax that it puts on U.S. ethanol as the country assesses the prospects of a trade deal with the U.S.
Any change in the ethanol duty would have to be gradual, Agriculture Minister Tereza Cristina Dias told reporters in Sao Paulo. ”Any market opening may be done gradually in order to not hurt Brazil’s sector,” Dias said.
Brazil currently applies a 20% tax on imports of U.S. ethanol beyond 150 million liters per quarter – 600 million liters per year (158 million gallons) – under a plan that is set to expire this month. The debate currently is on whether to renew the duty as if it expires, there would be a 20% duty on all U.S. ethanol shipments to Brazil.
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