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Home » Brazil, Business News/Analysis, Feedstocks, Field Crops, Opinions, Policy, Sustainability

Analysis: Unica Pleads for Ethanol Import Tariff, but Imports to Continue

Submitted by on April 10, 2017 – 11:43 pmNo Comment

by Beatriz Pupo (Platts) Brazilian sugar industry group, Unica, is seeking the introduction of an ethanol import tariff of 16%.

Unica is citing in its pleas the higher greenhouse gas emissions of corn ethanol, Brazilian imports of which have surged over the past year, arguing the imports will compromise targets under the COP21 agreement signed by Brazil in November.

The proposal was sent to the Brazilian Trade Chamber and follows recent appeals from ethanol producers in the North-Northeast region for the government to consider reinstating a 20% import tariff on ethanol, which was temporarily suspended until 2019.

The import tax was suspended in October 2011 because Brazil was undergoing an ethanol shortage due to crop problems.

“Nonetheless it is worth pointing out that, once the whole country’s consumption is taken into account, the expected imports in 2017 would represent only 6% of Brazil’s ethanol consumption,” according to Alessandra Rosete, senior analyst at Kingsman.  READ MORE and MORE (WNAX)

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