Brazil Sugarcane Industry Calls for Scrapping Ethanol Import Tariffs

News surface today that the Brazilian Sugarcane Industry Association (UNICA) has been working behind the scenes in Brasilia, the country’s capital, to scrap the 20% import tariff Brazil imposes on ethanol. Last October, UNICA sent a letter to the government in  October 2009 requesting the tariff be removed permanently. “The request reflects UNICA’s historical position of defending free trade for renewable fuels with proven energetic and environmental efficiency of the Brazilian sugarcane ethanol,” said a UNICA statement.

UNICA’s statements come amid speculation that Brazil could potentially import ethanol from the U.S. due to stronger than anticipated demand for ethanol in Brazil and the weak dollar. UNICA, however, appears to be providing evidence that the decision to remove the tariff predates the run up on ethanol prices.  In an op-ed in today’s Brazilian newspaper, Estado de Sao Paulo, UNICA’s President argued Brazil should lead the way in eliminating trade barriers, which would assist the country in pushing for the reduction or elimination of tariffs in other regions of the world, including the United States. (See related story: U.S. Govt: Dropping Ethanol Tariff Good for Americans)

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  1. [...] Spain’s Abengoa to Export U.S. Corn Ethanol to Europe? Posted on January 23, 2010 by sugarcaneblog According to a Platts report, multinational Abengoa will be exporting U.S. made corn ethanol from the U.S. to Europe. Traders consulted by Platts said the U.S. made renewable fuel could have been sold to the European trading firm Nidera for delivery in Rotterdam. Sources heard by Platts suggests Abengoa shipped non-denatured anhydrous ethanol from Nebraska to Houston, where presumably it would be added to a Nidera ship bound for Rotterdam. Because the product is non-denatured, it could theoretically go to Brazil, where there is a short term window open for exports. (See related article, Brazil Sugarcane Ethanol Industry Calls for Scrapping Ethanol Import Tariffs.) [...]

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