Brazil’s Ethanol Producers Want to Scrap Tariffs

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Written by Sabrina Deparine

Monday, 15 February 2010 11:52

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In the Philippines, ethanol enthusiasts and support groups are vying to increase the tariffs on imported ethanol. However, the exact opposite is now happening in Brazil.

Brazil’s Ethanol Producers Want to Scrap Tariffs

Brazil’s Ethanol Producers Want to Scrap Tariffs

The major producers of sugar and ethanol in Brazil are now urging the government to scrap the ethanol import tariff as soon as possible. According to them, this is for the benefit of Brazil.

Marcos Jank, President and CEO of the Brazilian Sugarcane Industry Association or Unica, said that the eradication of tariffs will eliminate the barriers and allow Brazil to “pursue similar measures from countries that keep their markets heavily-protected”.

The foreign trade chamber has earlier set aside a decision to remove the current 20% import duty on ethanol in Brazil. Unica says that removing this import duty will be strategically beneficial for the country. The current Brazilian tariff never discouraged imports but it is often criticized and cited as one of the “culprits” in opening up the global ethanol market.

The proposal to remove the 20% Brazilian tariff was submitted last October 2009 but the matter is still under discussion until now. This will be an important contributing factor to open new market, expand the use of ethanol as an alternative fuel and eventually transform this top a global commodity.

Unica recommends that the Brazilian foreign trade agency should make the announcement on removing the tariffs as soon as possible even if the implementation will not start yet in order to jumpstart or signal the opening of a more free global market.