That's how the Brazilian Sugarcane Industry Association (UNICA) views what it describes as little more than a "bureaucratic" delay.

According to UNICA President and CEO, Marcos Jank, the government should still make its announcement as soon as possible, even if the measure only becomes effective in July: "We are very encouraged by the statement from Brazil's Agriculture Minister, Reinhold Stephanes, who said after the meeting that it is 'highly probable' that the tariff on imported ethanol will be dropped as of July."

UNICA originally asked CAMEX to remove the import duty in a letter sent in October of last year. According to Jank, UNICA believes free trade is a two-way street and Brazil, as the largest producer of cane ethanol and largest exporter of ethanol in the world, with 60% of the global market, should lead by example. "We should eliminate barriers, which would then allow Brazil to pursue similar measures from countries that keep their markets heavily protected," he added.

The United States imposes two duties on ethanol imports: a 2.5% ad valorem tariff plus an additional "other duty or charge" of US$0.1427 per liter (US$0.54 per gallon).

According to data from the U.S. International Trade Commission (ITC), the combined duties have amounted to about a 30% tariff on ethanol imports, compared to the practically zero import duty applied to fossil fuels. Moreover, ITC's own analysis last year recognized that reducing the duty on ethanol imports would lead to a net gain for the U.S. that could reach US$356 million annually.

As UNICA noted in a press statement on January 21, the current Brazilian tariff has never been an inhibiting factor for imports.

However, the existence of this tariff is often criticized abroad, in the course of discussions to open up ethanol markets, especially in the United States. UNICA expects the elimination of the 20% Brazilian tariff, formally requested on October 30, 2009, to become an important ingredient in these discussions to open markets and expand the use of fuel ethanol, transforming it into a global energy commodity.

UNICA officials have pointed out that the association's request to CAMEX last year has no connection with the possibility of eventual ethanol imports into Brazil because of current domestic fuel prices. "The request was made months ago and has nothing to do with current market situations, and everything to do with promoting global free trade in clean energy," concluded Jank.

Brazil is a leader in the production of sugarcane ethanol, which is widely considered to be the most efficient biofuel available today. In 2009, Brazil produced over 7 billion gallons of sugarcane ethanol, most of which is used in Brazil in flex fuel vehicles.

As a result of Brazil's innovative use of sugarcane ethanol in transportation and biomass for cogeneration, sugarcane is the leading source of renewable energy in the nation, representing 16% of the country's total energy needs. In fact, gasoline has become the alternative fuel in Brazil, reducing the country's dependence on fossil fuels and cutting emissions.

A recent study in the November 2009 edition of the journal Energy Policy indicated that since 1975, over 600 million tons of CO2 emissions have been avoided thanks to the use of ethanol in Brazil.

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