Brazil reduces tariff on ethanol imports from 20% to 18%

By Erin Voegele | November 16, 2021

The USDA Foreign Agricultural Services on Nov. 12 announced Brazil took action on Nov. 5 to enact a unilateral 10 percent reduction of import tariffs on 87 percent of all goods and services through the end of 2022. Ethanol is among the products impacted.

According to the USDA, Brazil’s ethanol tariff was lowered by 10 percent, from 20 percent to 18 percent. Although the measure is temporary, the USDA noted the change could become permanent if adopted by the Mercosur trade bloc.

The agency’s announcement references a report filed with the USDA FAS Global Agricultural Information Network on Nov. 10. That report explains that the Brazilian government adopted the decision to reduce tariffs during the 6th Extraordinary Meeting of the administration Executive Committee of the External Trade Changer (CAMEX).

According to the GAIN report, the import tariff reduction aims to curb inflation in Brazil’s domestic market. The reduction is expected to help lower domestic prices by lowering the price of imports.

Additional information is available on the USDA FAS GAIN website.