Growth Energy welcomed the U.S. Trade Representative's decision to impose a 25% tariff on most goods from Brazil, calling it an important step toward addressing trade practices that the biofuels industry says have harmed U.S. ethanol exports.
The tariffs follow a yearlong USTR investigation into Brazilian policies that Growth Energy said have effectively blocked American ethanol from entering the country's market while allowing Brazilian ethanol continued access to the United States.
The trade association said Brazil has restricted U.S. ethanol imports for nearly a decade, creating an imbalance that has negatively affected American farmers and ethanol producers. Growth Energy said it supports restoring reciprocal trade between the world's two largest biofuel producers.
Growth Energy also said Brazil's trade practices extend beyond import restrictions. The organization argued that Brazil has discriminated against U.S. biofuels through its RenovaBio clean fuel program and has misrepresented deforestation associated with Brazilian production. According to Growth Energy, those actions have contributed to claims about land use change linked to U.S. ethanol that have affected export opportunities in the United Kingdom, Japan and the European Union.
The association also expressed support for the Trump administration's efforts to challenge Brazilian policies that it said limit the eligibility of U.S. ethanol in emerging markets, including maritime and sustainable aviation fuel applications.
Growth Energy said it plans to continue working with USTR on additional measures aimed at creating what it described as a level playing field for U.S. agricultural exports.
Source: Growth Energy, "Growth Energy Welcomes USTR Determination on Brazil’s Unfair Trade Practices"