A joint statement from the US Grains Council, the Renewable Fuels Association and Growth 

Energy issued Wednesday welcomed Brazil's decision to postpone the vote to reinstate the 

import tariff for 30-days. 

"We  are  encouraged to  see  Brazil's  postponement  on  a  decision  regarding a pending 

proposal to impose tariffs on US ethanol imports," the statement said. 

"This decision should not be taken lightly, as imposing tariffs on US ethanol imports will hurt 

Brazilian consumers by driving up their costs at the pump." 

Additionally, this action on US ethanol imports would be contrary to Brazil's own longstandin

g  view  that ethanol tariffs are inappropriate and would harm the development of the global 

ethanol industry, the statement added. 

The  debate  about  the  return  of  an  import  tariff  in Brazil has caught the attention of US 

exporters because Brazil has become the main destination for US product over the past few 

months. 

Kingsman, the agricultural analysis unit of S&P Global Platts, estimates that Brazil is likely to 

account for 43% of US exports in 2017, compared with 27% in 2016. 

The vote, which had already been rescheduled twice, once from early May and another time 

from  early  July,  was  supposed  to  have taken place on Tuesday by Brazilian foreign trade 

board Camex. 

The  economy  team  of  Camex  asked  for  the  vote  to  be  delayed to study an alternative 

proposal from the Ministries of Agriculture and Development suggesting a quota of 500 millio

n liters with zero tax. Imports above this amount would be subject to a 20% tax. 

The import tax was suspended in October 2011 because Brazil was hit by an ethanol shortag

e due to crop problems. The tariff is currently suspended until 2019. 

Brazilian ethanol producers have made strong appeals to the federal government to impose a 

17% tariff to restrict imports because domestic ethanol was becoming less competitive after a 

surge in exports from the US throughout 2016 and in early 2017. 

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