If Trump wants to be fair, take sugar rate
Trump quoted Brazil’s ethanol as one of the products for which he wants “reciprocity”. Brazil charges an import rate of 18% for the entry of the American ethanol.
Ometto countered by saying that the United States apply 150% rate for the entry of Brazilian sugar in the country. Sugar and ethanol are made of sugarcane.
The entrepreneur also says that sugarcane ethanol is cleaner than corn ethanol made in the United States. The plants that produce sugarcane ethanol use their own bagasse as a source of energy, while corn ethanol burns fuel.
Ometto says he has no doubt that Trump will fulfill the threat of taxing Brazilian ethanol. It states that negotiating is always the best way, but has doubts about the success of the initiative.
“Talking is always important, but diplomacy doesn’t work much there,” he says. “It’s no use retaliation either. Let’s retaliate with what?” He adds.
He states that Brazil needs to be careful when considering removing the surcharge of American ethanol so as not to become a kind of discharge for subsidized fuel coming from there only to regulate the domestic market of the United States.
