Oil and Gas

Camex changes brazilian ethanol quota distribution

Oct, 16, 2019 Posted by Sylvia Schandert

Week 201943

On Monday (10/14), the Foreign Trade Chamber (Camex) approved a resolution that redistributes the brazilian import quota of 750m liters of tariff-free ethanol according to the period of the year.

The measure seeks to balance the availability of imported ethanol – especially from the United States – so as not to disrupt the sugarcane mills in the Northeast.

In practice, most of the import quota may be used only during the northeastern sugar cane off-season.

As a rule, up to 200m liters may be imported by Brazil between the interval that began on August 31 this year and runs until February 29, 2020 – still in the production phase of the plants in the Northeast. Another 275m liters will have to be drained from March 1 through May 31, 2020, and the remaining 275m liters from June 1 through August 30, 2020.

With this measure, the government seeks to assuage criticism from ethanol producers in the Northeast and thus maintain the agreement signed during the March visit by President Jair Bolsonaro to US President Donald Trump. At the Washington meeting, Brazil pledged to increase its quota-free  brazilian ethanol import quota, which was of 600m liters and expired in August.

Source: Valor

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