It'll be nice to have all that Brazilianethanol coming into the country.
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Brazilianethanol producers argue for removal of the tariff.
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Shell said in February that it would team with Brazilianethanol and sugar giant Cosan.
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The United States is often the largest destination for Brazilianethanol exports, via processing plants in the Caribbean.
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Several deals in the last few months boosted the market share of foreign groups in the Brazilianethanol sector.
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Made from sugarcane, Brazilianethanol is in tight supply, with domestic demand growing more than 15 percent a year.
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Japan is a top buyer of Brazilianethanol but most of the product is for industrial uses, not fuel.
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The heavy tariffs on Brazilianethanol are about to come tumbling down, to the sure displeasure of certain corn-state lawmakers.
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The facilities often process Brazilianethanol bound for the United States, letting Brazil sidestep the U.S. tariff through regional trade pacts.
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Brazilianethanol producers are upset the United States still levies a 54 cent import tariff on each gallon of exported Brazilianethanol.
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Brazilianethanol exports in 2009 slipped to 3.3 billion liters despite extremely low prices on the Brazilian market.
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Companies that import Brazilianethanol can collect the D5 RINs when they blend it with regular fuel, improving the economics of the trade.
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Japan wants to increase domestic ethanol production from rice biomass as it has surplus land and wants to compete with cheap Brazilianethanol.
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Lower Brazilianethanol exports this season coincided with an increase in production in the United States and Europe, said Plinio Nastari, president at Datagro consultants.
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Earlier this month, Swiss-based commodities trader Glencore GLEN.UL bought a stake in Brazilianethanol plant Rio Vermelho, its first ever investment in the cane sector.
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The EPA estimated in February that 666 million gallons of Brazilianethanol would be needed to meet its 2013 goal.