Colombia: Biofuels Annual
In January 2019, Colombia’s Ministry of Commerce, Industry and Tourism initiated a countervailing duty (CVD) investigation on U.S. ethanol at the behest of the National Biofuels Producers Association. The preliminary decision of the CVD case imposed a preliminary 4-month ad valorem duty of 9.36 percent on U.S. ethanol imports, beginning May 9, 2019. Ethanol production is expected to reach 490 million liters in 2019, 4 percent higher than 2018, as a result of normal weather conditions, a higher blend mandate (E10) coupled with larger fuel pool, and more protection from U.S. ethanol imports. Imports from U.S. remain higher than past years but are expected to slow given the temporary duty, possible price regulation on imports, and the likelihood that U.S. ethanol prices will remain higher in the near future due to higher U.S. corn prices resulting from rain delayed planting. Fuel ethanol imports are estimated to reach 220 million liters in 2019.
