Renewable Fuel Association officials are pleased Brazil has backed off increasing their value added tax on U.S. ethanol that they import. RFA Senior Vice President Geoff Cooper says they’re not out of the woods yet, but believe they have time to resolve the issue going forward.

He says Brazil is the top customer of U.S. ethanol and needs the product. Cooper says Brazil is using more of its sugar for domestic needs and doesn’t have enough for their own ethanol production.

Cooper says while Brazil is the top market for U.S. ethanol, Canada has been second. He says now however the U.S. has seen business from emerging markets including India which is now the number two market.

Cooper says if Brazil chooses to increase the value added tax on U.S. ethanol, it will just hurt their consumers and increase prices at the pump.