Tariff Reductions for Brazilian Sugar in Exchange for Possible Release of US Corn Ethanol in Brazil

In short:

Representatives from Brazil's agribusiness sector visited Washington, DC, engaging with American authorities to discuss the reduction of tariff barriers on sugar in exchange for a potential release of US corn ethanol in Brazil.

The US government, which imposes annual quotas on sugar imports from other countries, may now alter the landscape of this commodity with negotiations between the two nations further propelling Brazilian production, in a moment when Brazil already demonstrated an impressive 74.9% increase in sugar export volume in recent years.

As one of the attendees at the meeting states, the United States, a global leader in ethanol production, aims to decrease exports from China, presenting an opportunity for Brazil to step in and replace these imports.