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Colombia Imposes Countervailing Tariffs On US Ethanol

Business News/Analysis, Colombia, Feedstocks, Field/Orchard/Plantation Crops/Residues, Opinions, Policy
May 12, 2020
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by Loren Moss (Finance Colombia) Colombia’s government today announced that it would impose tariffs on ethyl alcohol (ethanol) imports from the United States for the next two years in the amount of 6.646 cents US per kilogram, an amount it says is equal to controversial US government subsidies of domestic ethanol producers.

According to Colombian authorities with the Ministry of Commerce, Industry & Tourism (MinCIT), their investigation demonstrated that of the total corn subsidies paid by the US government, 68.7% went towards the production of ethanol, amounting to $0.06646 USD per kilogram subsidy. Compared to the price of the last declared importation of the alcohol, that represents an ad valorem tariff of 13.2%. READ MORE

U.S. Ethanol Industry Disappointed in New Colombian Duties (Renewable Fuels Association/Growth Energy/U.S. Grains Council)

Colombia levies new tariffs on US ethanol imports (S&P Global Platts)

 

Excerpt from Renewable Fuels Association/Growth Energy/U.S. Grains Council: The Colombian Ministry of Commerce, Industry, and Tourism (MINCIT) this weekend announced it will impose duties of $0.1997/gallon on U.S. ethanol exports to Colombia. The following is a joint statement from leadership of the Renewable Fuels Association, U.S. Grains Council and Growth Energy.

“While we have cooperated fully with investigating authorities in Colombia to demonstrate these final duties are unjustified, the Colombian government sided with Colombia’s ethanol industry. MINCIT’s decision was not supported by evidence and raises questions regarding the Ministry’s compliance with standard CVD procedures.

“The U.S. ethanol industry remains committed to our partners in Colombia, continuing to help the country meet its blending targets and providing benefits to Colombian consumers so they may access a clean, renewable and affordable fuel.”   READ MORE

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corn/maizeethanol/bioethanolgovernment subsidiesimport/exporttariffsTrade Policy
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