According to the Ministry of Foreign Affairs (MRE), the Brazilian government decided to extend the tariff-free import quota on ethanol imported from the United States for three months. The measure aims to buy time to negotiate better terms in exporting sugar to the United States. According to the MRE, “Brazil and the United States will also consider an increase in access to the corn market in both countries. The two countries will also discuss ways to ensure fair market access alongside an increase in ethanol consumption, as well as to coordinate and ensure that the ethanol industries in both countries are treated fairly and benefit from future regulatory changes in biofuel products in Brazil and the United States. The discussions must seek to achieve reciprocal and proportional results that generate trade and open markets for the benefit of both countries ”. The Government also informed that the discussions will take place over a period of 90 days, beginning on September 14, 2020. During this period, Brazil will maintain a pro-rata tariff rate quota (TRQ), proportional to the total annual volume of TRQ in effect on 30 August 2020.
Source: Datamar News