RIO DE JANEIRO, BRAZIL - All US ethanol imports into Brazil now face a 20% tariff, following the expiration December 14th of a temporary quota allowing for tariff-free imports of 187.5 million liters of US product.
Market participants were not expecting a renewal of the quota, issued September 14th, mainly due to the new international political scenario and uncertainties about an extension of the Brazilian sugar quota into the US, an old request from the Northeast Brazilian producers.
Although Brazilian fuel demand was strongly hampered by the coronavirus pandemic, anhydrous ethanol domestic supply and imports were also reduced over . . .