Brazil's Minister says that the US tariff talks will continue, and he links ethanol to sugar

The Brazilian Finance Minister Fernando Haddad stated on Thursday that his government anticipates long tariff negotiations with the United States. He also suggested that they will include trade discussions regarding sugar and ethanol.

"They will not make Brazil an exception, as they are at war with the world." He told GloboNews TV that this would not happen. "But, when we sit down at the negotiation table, they'll bring up ethanol and we'll bring up sugar."

A White House factsheet on the plan cited Brazil's ethanol taxes as an example unfair trade practices.

This led Brazil's Energy and Mining minister Alexandre Silveira, to describe a possible U.S. tariff against Brazilian ethanol as unreasonable. He stressed that both countries have traditionally negotiated sugar and ethanol trade together.

Brazil is the largest producer of sugar in the world. The vast majority of its sugarcane ethanol is also produced there, as opposed to the ethanol that's made largely from corn in the U.S.

Brazilian officials argue often that the tariffs imposed by the U.S. for sugar imports not covered by preferential quotas are too high and exceed Brasilia's tariffs on ethanol imports.

Haddad stated that the exchange of service with the United States where Brazil is a major importer could be another key issue during negotiations.

The Minister stressed that Brazil does not want to "add more fuel to the fire" in the tariff dispute and is therefore waiting for the U.S. government to explain its approach to bilateral trading.

He said that Brazil was reviewing its entire export and import agenda item by item so that, when we come to the table for negotiations, we could also present our requests. He stressed that the approach will be "reciprocity not retaliation." (Reporting and editing by Brad Haynes, Aurora Ellis and Marcela Ayres)

(source: Reuters)