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RFA asks Trump to impose tariffs on Brazilian ethanol imports

The Renewable Fuels Association last week reminded President Donald Trump that regarding the U.S. ethanol trade policy with Brazil, Trade Representative Robert Lighthizer had promised to “ensure that the ethanol industries in both countries will be treated fairly.”

“Unfortunately, it does not appear that any further progress is being made toward elimination of Brazil’s protectionist ethanol trade policies and restoration of the previous free and fair ethanol trade relationship we enjoyed with Brazil,” wrote RFA President and CEO Geoff Cooper.

“Instead, it appears likely that Brazil will allow its temporary tariff-free quota to expire again on December 14, at which time a 20 percent (or higher) tariff could be applied to all ethanol imports from the United States.”



RFA says it has become clear that Brazil “no longer shares the American industry’s desire for free and open biofuel markets. Thus, the association is urging the administration to move forward with reciprocal tariffs on ethanol imports from Brazil.”

“The impacts of the unlevel playing field for ethanol trade have become painfully apparent in recent months,” Cooper added.



“U.S. imports of Brazilian ethanol have surged, with new shipments appearing at U.S. ports in nine of the past 12 weeks. Year-to-date imports of Brazilian ethanol exceed the same period in 2019 by 15 percent and are at a seven-year high. … We strongly believe that the answer to this trade dispute requires the imposition of reciprocal duties on ethanol imports from Brazil.”

–The Hagstrom Report