Brazilian farm leaders are worried new tighter rules governing food imports to the U.S. could cut its imports.
On July 26, the U.S. Food and Drug Administration proposed new regulations to increase the safety of imported foods that will affect the $4 billion in farm imports that Brazil sends north every year.
Ethanol shipments, which totaled $1.5 billion in 2012, would potentially be worst hit.
Under the proposals, purchasers of Brazilian ethanol must pay up front for shipments, while biofuel imports must not be transported along pipelines in the country of origin.
"The regulations bring exorbitant costs and are unnecessary for the importer and producer," Leticia Phillips, the North America representative of the Brazilian Sugarcane Industry Association (UNICA), told Folha de S Paulo, a local daily.
The pipeline rule is especially worrying as Brazil has plans to transport much more ethanol by this method in the coming years.
The rule proposals, which are designed to implement the Food Safety Modernization Act (FMSA), are currently in a 120-day period for public comment.
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.
More Recommended for You
Continued weakness in cash hog values and the expectation that additional supplies in the cattle...
Crop conditions were mostly stable last week with corn condition unchanged from the previous week...