Brazilian President Jair Bolsonaro and U.S. President Donald Trump are both keen on strengthening the ties between their respective countries, but a comprehensive trade pact isn’t likely in the near future because of Democratic opposition, says U.S. Trade Representative Robert Lighthizer.
The U.S. and Brazil have not yet reached a deal on U.S. demands to be able to sell the country more ethanol, but the Brazilian government is making clear what it is demanding in return, according to sources in both countries. Brazil wants more access to the lucrative and tightly guarded U.S. sugar market.
The U.S. and Brazil have agreed to revive for 90 days the expired tariff rate quota that allows some U.S. ethanol to flow to the South American country duty free, the two countries said in a joint statement Friday night.
There won’t likely be enough sugar in the U.S. market to comfortably supply all the bakers, candy makers and food manufacturers that need it at a reasonable price, so USDA will soon be announcing a plan to allow for more imports, the department announced Friday.