Brazil is the second largest producer and use of ethanol after the U.S. The U.S. has an import tariff on ethanol of 2.5 percent ad valorem and has asked Brazil to reciprocate. Brazil maintains an import tariff of 11.75 percent on ethanol. Nonetheless, U.S. exports of ethanol have been on a meteoric climb. 01142025analysisgrb.png 18.82 KBUnder the recently agreed EU-Mercosur trade agreement, tariffs on ethanol imported into the EU from the Mercosur nations will be phased down to one-third of their current rate and subject to a quota system of almost double their current shipments. The EU is the second or third largest export market for U.S. ethanol. The improved access achieved under this agreement by Brazil and Mercosur could reduce U...