U.S. ethanol groups said they are encouraged by Brazil’s delay in making a decision on its proposed tariff for imports of U.S. ethanol.

The Executive Management Committee of CAMEX, Brazil’s Chamber of Foreign Trade, said on July 5 that it would delay deciding on a proposal that would impose a tariff of up to 17% on the nation’s imports of U.S. ethanol.

The U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy have been tracking the issue for months and have worked in Washington, D.C., U.S., and Brasilia, Brazil, to provide information to the Brazilian government on the issue.

The groups say imposing tariffs on U.S. ethanol imports would hurt Brazilian consumers by driving up the cost of gasoline.

“Additionally, this action on U.S. ethanol imports will go against Brazil’s own longstanding view that ethanol tariffs are inappropriate and will harm the development of the global ethanol industry,” the groups said. “We will continue this work and appreciate the thoughtful consideration Brazilian officials are taking on a proposal that could have wide-ranging and long-standing impacts on both our industries and the global fuel supply.”