The Mercosur/EU agreement will help Brazil by increasing its exports of beef, oilseeds, sugar, ethanol, and orange juice. Industrial ethanol will have tariffs gradually lowered to zero, with a cap of 450 thousand tons free from taxes when the agreement goes into force. A third of the European tariff (6.4 euros or 3.4 euros per hundred liters) will be applied to ethanol used for fuel and other purposes, with a quota of 200,000 tons. Six stages of increase in volume will follow, up to five years after the agreement takes effect. Zero tariffs over time will apply to a limit of 180,000 tons of sugar; any surplus will be liable to existing taxes ranging from 11 to 98 euros per ton. Paraguay will also receive a zero-rate targeted allotment of 10,000 tons.
Sources: Canal Rural/O Globo/Nova Cana (*Translated by Ia Niani)