Brazil Raises Ethanol Tariff Rate Quota

On September 5, 2019, in Ethanol, by David Elrod

Brazil announced on Tuesday that it has raised the quota on U.S. ethanol imports under the tariff rate quota (TRQ) by nearly 25 percent to 750 million liters per year from 600 million liters per year.

The quota signifies the threshold of ethanol that can be imported into Brazil without incurring the standing 20 percent tariff. Brazil did not alter the 20 percent tariff.

Brazilian newspaper Valor Economico reported Tuesday that the quota shift would result in a reduction of over $65 million in annual tariff collections.

Brazil first announced the original 600 million liter quota and 20 percent TRQ in 2017.

Brazil’s Foreign Minister Ernesto Araujo and President Jair Bolsonaro’s son Eduardo met with President Donald Trump at the White House last week to discuss the move.