U.S. Commerce Consultant (USTR) Ambassador Katherine Tai testified earlier than the Senate Finance and Home Methods and Means Committees this week. Biofuels champions Sen. Chuck Grassley (R-Iowa) and Rep. Darin LaHood (R-Illinois) took the chance to name consideration to the ethanol business’s present commerce boundaries with Brazil, and to ask the Ambassador straight what motion is being taken to deal with them. Have a look:
In each of her responses, Tai reiterated that USTR and the Biden administration proceed to interact with Brazil on this challenge and that it’s one in all their high priorities.
We’re grateful to our champions for persevering with to carry Brazil accountable for these unfair commerce practices and we sit up for persevering with our work with each USTR and the U.S. Division of Agriculture (USDA) to degree the commerce enjoying subject for ethanol producers.
Continued Commerce Engagement this Yr
Forward of this week’s hearings, Development Vitality, together with U.S. Grains Council and the Renewable Gasoline Affiliation, submitted feedback to the Brazilian Chamber of International Commerce (CAMEX) relating to the Brazilian tariff on imported U.S. ethanol. Rep. LaHood and Rep. Randy Feenstra (R-Iowa) had additionally led a letter of over 20 Members of Congress encouraging USTR and USDA to do the identical (learn the total letter right here).
Moreover, the co-chairs of the Agriculture Commerce Caucus, Reps. Jimmy Panetta (D-Calif.), Adrian Smith (R-Neb.), Jim Costa (D-Calif.), and Dusty Johnson (R-S.D.), led 24 of their colleagues within the Home urging the Biden Administration to make agriculture a precedence in its commerce agenda by lowering tariff and non-tariff boundaries for American agricultural exports, together with ethanol.
Sen. John Thune (R-S.D.), together with Senators John Boozman (R-Ark.) and Mike Crapo (R-Idaho) led 19 of their Senate colleagues in urging Ambassador Tai and USDA Secretary Vilsack to enhance U.S. agricultural exports and enhance the competitiveness of U.S merchandise overseas.
Background on Brazil
On February 1, 2023, CAMEX reinstated an import tariff on American ethanol exported to Brazil. Ethanol from the US is topic to a now 18 p.c tariff, whereas ethanol shipped to the US from Brazil receives duty-free remedy. Furthermore, Brazilian ethanol imports are incentivized beneath the U.S. Renewable Fuels Commonplace and the newly created 40B Sustainable Aviation Gasoline tax credit score, in addition to California’s, Oregon’s, and Washington’s Low Carbon Gasoline Commonplace program. This remedy will not be reciprocated for American corn ethanol in Brazil.
