The Brazilian government’s tariff rate quota that placed a 20 percent duty on American ethanol imports exceeding 198 million gallons ended on August 31. Government officials there have yet to announce plans for the future of the U.S.-Brazil trade relationship.
If the government doesn’t take further actions, all U.S. ethanol coming into Brazil faces a 20 percent tariff. The Chair of the House Ag Committee, Collin Peterson, is not happy about the situation.
“American corn and ethanol producers are struggling to access domestic markets because of the coronavirus and the Environmental Protection Agency’s reckless implementation of the Renewable Fuels Standard,” Peterson says. “Brazil’s move to increase tariffs on American ethanol is more bad news for producers.”
He wants the administration to continue working with Brazilian officials to restore the duty-free access that was in place from 2012 to 2017. “Tariff wars have consequences, and our biofuels producers are seeing that firsthand,” he adds. Brazil has been a major buyer of U.S. ethanol, importing 332 million gallons worth $493 million in 2019.
Peterson and 19 other members of Congress recently sent a letter to U.S. Trade Representative Robert Lighthizer asking him to pressure Brazil’s leaders to restore zero-tariff ethanol trade between America and Brazil.
