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Brazil protects domestic producers against US ethanol


Brazil will now implement a rule that forces importers of ethanol to have a minimum amount of product kept in stocks, just like the rule already in place for domestic producers, the Ministry of Energy in Brazil said yesterday. This would make the cost of importing US ethanol push considerably higher, and serve as an alternative to the 16% tariff on US ethanol which was proposed last month by the Agriculture Minister.

Fernando Coelho, Brazil’s Energy Minister expressed his opinion that the new rule is a better way to protect domestic producers against the soaring imports of cheaper US product.

“I’m against taxation because I think it would cost us and generate retaliation, but we need some measures to protect our sugarcane ethanol from the US’s corn ethanol”, said Coelho in a conference in Sao Paulo.

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JFS 16/05/2017

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