Sugar and Ethanol

US rules out new market access for Brazilian sugar imports

Mar, 22, 2021 Posted by Ruth Hollard

Week 202113

The United States will not negotiate new market access for Brazilian sugar imports in exchange for exports of American ethanol to the country. The information is from the United States trade representative in Brazil, Katherine Tai. According to her, no sector will be harmed to the detriment of another in bilateral trade relations.

The statements were sent in writing to the Senate Finance Committee. Tai answered questions from senators about how she would handle trade issues related to sugar after the March 17 hearing that confirmed her name to the US Trade Representative’s Office.

Asked about Brazil’s recent attempts to negotiate conditions to expand the sale of sugar to the US in exchange for openings or exemptions for ethanol and other commodities, Tai said she would not pit American production sectors against each other. “In my testimony, I emphasized that no US stakeholder should be prioritized over the other during trade negotiations,” she said. “If confirmed, I commit to ensuring that no new agricultural market access takes place at the expense of other agricultural stakeholders”.

It is worth remembering that the measure is an old demand from Brazilian sugarcane producers and was placed as a condition to allow the entry of American ethanol – in the USA, corn is the main raw material in the production of biofuel. Last year, at the request of President Jair Bolsonaro, Brazil created an additional quota for the import of biofuel, which expired in December without any progress in bilateral negotiations. Currently, all American ethanol that enters Brazil is taxed at 20%.

Source: Valor Econômico

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