Brazil extends TRQ on ethanol for 90 days

The U.S. government on Sept. 11 announced that bilateral trade discussions on ethanol with Brazil will take place over a 90-day period starting on Sept. 14. During that time, Brazil will maintain a pro-rata tariff-rate quota (TQR) for ethanol proportional to the total annual volume of the TRQ that was in force on Aug. 30.

The TRQ in place as of Aug. 30 allowed duty-free energy of 750 million liters (198.13 million gallons) of ethanol annually, with seasonal restrictions. U.S. ethanol volumes above that TRQ were submit to a 20 percent tariff.

A statement issued by the Office of the U.S. Trade Representative on Sept. 11 explains the two countries have decided to conduct result-oriented discussions on an arrangement to improve market access for ethanol and sugar in Brazil and the U.S. The statement also said they will consider an increase in market access for corn in both countries.

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