RFA disappointed in Brazil’s ethanol tax ruling
The General Counsel for the Renewable Fuels Association says he’s disappointed that Brazil has ended a tax exemption on ethanol imports.
Ed Hubbard tells Brownfield the decision restores a high tariff rate on ethanol imports from the United States.
“We thought and anticipated that the Lula administration would make an effort to try to reset trade relationships with the United States, but this seems to signal something a little different,” Hubbard said.
He says the import tax will impact the U.S. ethanol industry.
“It’s going to increase the prices for fuel,” Hubbard said. “It’s really the wrong direction for the two leading producers of ethanol globally to be engaging in an effort to tax trade between the two countries. It just doesn’t make sense.”
Hubbard says Brazil’s President, Luiz Inácio Lula da Silva, has a meeting with President Biden in the coming days and hopes the trade dispute is discussed.