Growth Energy urged the U.S. Trade Representative to impose tougher trade measures against Brazil, arguing the country's restrictions on U.S. ethanol have harmed American farmers and biofuel producers while allowing Brazilian ethanol broad access to the U.S. market.

The biofuels trade association testified July 6 in support of proposed penalties during a USTR hearing following a yearlong investigation into Brazil's trade practices. Growth Energy also submitted written comments earlier this month supporting the administration's proposal to impose a 25 percent tariff on all goods imported from Brazil while encouraging additional actions to address what it described as unfair treatment of U.S. ethanol.

The organization said Brazil has maintained barriers to U.S. ethanol imports since 2017 while benefiting from unrestricted access to the American market. It urged USTR to take steps beyond the proposed tariff, including measures aimed at addressing concerns over Brazilian land use and deforestation practices that it said affect international clean fuel markets.

Growth Energy also called on USTR to work with the U.S. Environmental Protection Agency to eliminate Brazilian ethanol's eligibility to generate credits under the Renewable Fuel Standard. The association argued that Brazil's RenovaBio program effectively excludes U.S. biofuels while Brazilian ethanol continues to receive favorable treatment under the U.S. renewable fuel program.

In its testimony, Growth Energy contended that claims linking U.S. ethanol production to land use change have resulted in penalties that reduce export opportunities in markets including the United Kingdom, Japan and the European Union. The group said those policies also create barriers to expanding the use of U.S. ethanol in marine fuel and sustainable aviation fuel markets while allowing Brazilian producers to avoid similar restrictions.

The hearing is part of the USTR's review of Brazil's trade practices as the administration considers whether to impose the proposed tariffs and other potential trade remedies.

Source: Growth Energy, "Growth Energy Backs U.S. Penalties Against Brazil for Unfair Trade Practices"