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Groups pleased by Brazil’s delay on ethanol tariff
Brazil has put a 30-day delay on deciding whether to impose a 20-percent import tariff on U.S. ethanol. The US Grains Council, Growth Energy and the Renewable Fuels Association (RFA) have issued a joint statement saying they are encouraged by Brazil’s postponement.
The proposal would allow just over 132-Million gallons before the tariff would be triggered.
Bob Dinneen, head of the RFA, says if approved, the tariff would hurt Brazilian and U.S. consumers.
Dinneen co-wrote an opinion piece with former Brazilian Sugarcane Industry Association representative Joel Valesco – in a Brazilian newspaper – saying consumers will win in an open world market for ethanol.
Dinneen tells Brownfield the tariff threat appears to be a protectionist strategy promoted by Brazil’s Ag Minister to benefit sugarcane producers. Sugarcane is the basis of Brazilian ethanol.
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