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Brazilian Sugarcane Industry Association Stresses Need for Brazil's Government to Announce Ethanol Import Tariff Cut as Soon as Possible
Date:2/9/2010

uties have amounted to about a 30% tariff on ethanol imports, compared to the practically zero import duty applied to fossil fuels. Moreover, ITC's own analysis last year recognized that reducing the duty on ethanol imports would lead to a net gain for the U.S. that could reach US$356 million annually.

As UNICA noted in a press statement on January 21, the current Brazilian tariff has never been an inhibiting factor for imports. However, the existence of this tariff is often criticized abroad, in the course of discussions to open up ethanol markets, especially in the United States. UNICA expects the elimination of the 20% Brazilian tariff, formally requested on October 30, 2009, to become an important ingredient in these discussions to open markets and expand the use of fuel ethanol, transforming it into a global energy commodity.

UNICA officials have pointed out that the association's request to CAMEX last year has no connection with the possibility of eventual ethanol imports into Brazil because of current domestic fuel prices. "The request was made months ago and has nothing to do with current market situations, and everything to do with promoting global free trade in clean energy," concluded Jank.

ABOUT UNICA

The Brazilian Sugarcane Industry Association (UNICA) represents the top producers of sugar and ethanol in the country's South-Central region, especially the state of Sao Paulo, which accounts for about 50% of the country's sugarcane harvest and 60% of total ethanol production. UNICA develops position papers, statistics and specific research in support of Brazil's sugar, ethanol and bioelectricity sectors. In 2008, Brazil produced an es
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SOURCE Brazilian Sugarcane Industry Association
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