Trade A. Exports Ethanol 1. Brazilian Ethanol Production, Supply and Demand PSD Tables

The size of the Brazilian light vehicle fleet also plays a role in encouraging ethanol consumption. The fleet is estimated at 35.46 million units in June 2017, and pure hydrous ethanol and flex fuel powered vehicles together represent approximately 76 percent 27 million units of the total fleet. The table below shows the licensing of flex fuel vehicles FFV and hydrous ethanol powered cars, as reported by the Brazilian Association of Vehicle Manufacturers ANFAVEA. Sales of FFV currently represent over 90 percent of total monthly vehicle sales. The slowdown of the Brazilian economy in 2016 has sharply affected the purchasing of new flex-fuel cars. Licensing of Ethanol Powered Vehicles pure ethanol flex fuel units 2011 2012 2013 2014 2015 2016 20171 2,848,071 3,162,824 3,169,111 2,940,508 2,194,020 1,750,754 881,559 Source: National Association of Vehicle Manufacturers ANFAVEA 1 January-June

4.4. Trade A. Exports

Brazil’s total ethanol exports for 2018 are forecast at 1.4 million liters, unchanged from the current estimate for 2017. Fuel ethanol exports for 2016 are estimated at 939 million liters, mostly to the United States. The tables below show ethanol exports NCM 2207.10 through 2207.20.19 for 2016 and 2017 January-June, as reported by the Brazilian Secretariat of Foreign Trade SECEX. Brazilian Ethanol Exports NCM 2207.10, 2207.20.11 2207.20.19, MT, 000 Liters, US 1,000 FOB CY 2016 CY 2017 1 Country Volume Weight Value Volume Weight Value United States 795,207 629,311 421,649 440,605 348,349 272,043 South Korea 630,890 514,418 300,267 88,289 71,277 45,376 Japan 82,200 64,972 44,619 55,955 44,168 34,735 Colombia 15,308 12,339 8,377 5,873 4,788 3,803 Uruguay 2,749 2,238 1,592 856 694 522 Liberia 1,457 1,174 943 476 384 335 Cote DIvore 245 197 169 340 274 237 France 168 135 223 Chile 1,188 1,036 769 327 264 190 Paraguay 123 110 115 124 119 150 Others 259,668 208,998 117,844 599 486 517 Total 1,789,034 1,434,793 896,343 593,612 470,938 358,131 Source: Brazilian Foreign Trade Secretariat SECEX Note: Numbers may not add due to rounding 1Jan-Jun.

B. Imports

Brazil’s total ethanol imports for 2018 are projected at 1.3 billion liters, a decrease of 400 million liters compared to 2017, due to expected increase in domestic production. Ethanol imports are only for fuel use and originate almost entirely from the United States. Steady imports from the United States, particularly since the second semester of 2016 and early 2017, have concerned domestic ethanol producers, who requested the Brazilian government impose an import tariff see section 2.2.5. Ethanol Import Tariff Quota. However, post contacts report that even if the tariff is increased, at certain times in the year imports will continue because the price arbitrage still favors U.S. ethanol. The tables below show ethanol imports NCM 2207.10 through 2207.20.19 for 2016 and 2017 January-June, as reported by the Brazilian Secretariat of Foreign Trade SECEX. Brazilian Ethanol Imports NCM 2207.10, 2207.20.11 2207.20.19, 000 Liters, MT, US 1,000 FOB CY 2016 CY 2017 1 Country Volume Weight Value Volume Weight Value United States 829,819 655,378 392,779 1,279,773 1,021,486 640,613 Paraguay 572 452 420 Jamaica 41 48 354 40 32 221 Germany 99 80 105 73 63 83 France 10 9 65 6 5 35 Sweden 7 6 47 2 4 30 Mexico 1 3 14 2 2 10 Spain 1 Japan 7 Switzerland Others 2,166 1,741 1,314 Total 832,144 657,264 394,684 1,280,469 1,022,042 641,414 Source : Brazilian Foreign Trade Secretariat SECEX Numbers may not add due to rounding 1Jan-Jun.

4.5. Ending Stocks