Brazil asked by U.S. to revise cap on ethanol imports: official

RIO DE JANEIRO, March 28 (Xinhua) -- The United States has asked Brazil to revise its limit on ethanol imports free of tariffs after Brazil was temporarily exempted from the metals tariffs, a Brazilian trade official said Wednesday.

The move is in reaction to Brazil's request for exemption from paying a 25-percent tariff on its steel exports to the United States and a 10-percent tariff on aluminum, said Thomaz Zanotto, director of foreign trade at the Federation of Industries of the State of Sao Paulo.

Thomaz, a member of the Brazilian delegation that negotiated and secured the exemption with U.S. officials, told reporters that "It's a fact that the paradigms of trade negotiation with the United States have changed."

According to Thomaz, Brazil's agreement to review its caps was a precondition to start further negotiations on the metals tariffs.

Washington last week suspended the tariffs for Argentina, Australia, Brazil, Canada, Mexico, South Korea, and the European Union member states until May 1, and will decide whether to continue to exempt these countries from the tariffs by the extended deadline.

Brazil, the world's second largest exporter of steel to the United States, imposed limits on ethanol imports in September, after domestic ethanol prices dipped due to imports.

Brazil's Chamber of Foreign Trade decided up to 600 million liters of ethanol a year can be imported free of tariffs from the United States for a period of 24 months. Anything above that is subject to a 20-percent import tax. Enditem