Additional import quota for zero-duty ethanol expires with no renewal forecast

The quota of duty-free Ethanol from countries outside Mercosur, created for American producers in September to please President Donald Trump in the middle of an election race, expired on Monday, December 14, and there are no signs that it will be renewed.

Itamaraty has made no progress in negotiations to expand the entry of Brazilian sugar into the United States, and Trump’s defeat in the American elections has cooled
conversations on the subject.

The quota approved in September by CAMEX, the foreign trade chamber, allowed the importation of 187.5 million liters of ethanol exempt from the 20% Common External Tariff (TEC) for 90 days, an increase to the annual quota of 750 million liters that they received at the end of August.

The Brazilian productive sector, parliament’s “rural bench”, and the Ministry of Agriculture were against the quota, as they doubted Brazil would receive any concrete counterpart from the Americans for this concession. The Minister of Foreign Affairs, Ernesto Araujo, showed his favor to the USA and convinced President Jair Bolsonaro to approve the export.

Sources close to Minister Tereza Cristina say that she reported to the segment that there were no discussions about renewing or extending the ethanol quota in the government. Any change depends on a decision by CAMEX, which usually involves prior internal conversations.

Source: Valor Econômico

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