BRAZIL SHOULD NOT RENEW QUOTA FOR IMPORTED ETHANOL FREE OF CHARGE

The recent meeting between the president of Brazil, Jair Bolsonaro, and the leader of the United States, Donald Trump, did not result in changes in quotas for export of domestic sugar. The information is from Valor Econômico. According to a report published by the newspaper, the United States has shown no willingness to increase its current tariff quota free from 150K to 160K tons per year. The increase in the US market for Brazilian sweetener is one of the ideas advocated by the Union of Sugarcane Industry (Unica) as part of a free market policy. As a consequence of this positioning of the Trump government, Brazil also should not renew the quota of 600 million liters of ethanol free of tariffs, Valor was told by a source of the Brazilian government that participated in the negotiations. The 20% tariff exemption currently in force will expire next August. With the end of the quota, ethanol producers in the Northeast should benefit, since the region is the one that imports most of the product of the United States.

Source: Nova Cana