The Renewable Fuels Association today welcomed an announcement by the U.S. Trade Representative that the United States will impose a 25 percent tariff on most goods imported from Brazil, including ethanol. Pursuant to Section 301 of the Trade Act of 1974, USTR is taking this action in response to Brazil’s unreasonable and burdensome trade barriers, which include an 18 percent tariff on U.S. ethanol imports and technical barriers that have prevented U.S. ethanol producers from participating in Brazil’s low-carbon fuel program, known as RenovaBio.
“We applaud the action being taken by USTR and strongly support the Trump Administration’s efforts to level the playing field for U.S. ethanol producers and farmers,” said RFA President and CEO Geoff Cooper. “Over the past several years, Brazil has gone out of its way to block lower-cost U.S. ethanol through a complicated framework of tariffs and marketplace barriers. After Brazil rebuffed numerous attempts by the U.S. to negotiate a return to free and fair ethanol trade between our two nations, our leaders were left with no choice but to establish reciprocal treatment. It is our sincere hope that this action will motivate Brazil to come back to the negotiating table for good-faith discussions on improving ethanol trade between our two countries.”
The action comes after the USTR convened two public hearings, received over 360 public comments, and negotiated intensively with the government of Brazil to seek resolution of U.S. concerns. USTR’s investigation into Brazil’s practices found indisputable evidence of discriminatory treatment, illegal barriers, and irreparable harm to U.S. ethanol producers. The RFA provided substantial written and oral testimony in support of the initiation of the investigation last year. More recently, RFA provided testimony in support of the USTR’s notice of determination and proposed 25 percent duties earlier this month.
