{"id":4987,"date":"2017-09-07T15:51:05","date_gmt":"2017-09-07T15:51:05","guid":{"rendered":"https:\/\/grains.org\/ltamex\/american-biofuels-producers-demand-u-s-government-respond-to-brazilian-tariff\/"},"modified":"2018-02-21T03:06:18","modified_gmt":"2018-02-21T03:06:18","slug":"american-biofuels-producers-demand-u-s-government-respond-to-brazilian-tariff","status":"publish","type":"post","link":"https:\/\/grains.org\/ltamex\/american-biofuels-producers-demand-u-s-government-respond-to-brazilian-tariff\/","title":{"rendered":"American Biofuels Producers Demand U.S. Government Respond to Brazilian Tariff"},"content":{"rendered":"

Growth Energy, the Renewable Fuels Association, and the U.S. Grains Council are calling upon the U.S. government to develop an immediate response to Brazil\u2019s newly implemented tariffs on U.S. ethanol imports, a trade barrier that threatens over $750 million in U.S. exports and American jobs.<\/span><\/p>\n

On August 23, 2017, Brazil\u2019s Chamber of Foreign Trade imposed an immediate two-year tariff-rate quota (TRQ) system for ethanol imports. Under the TRQ, a 20 percent tariff will be applied to purchases from the U.S. after a 600 million-liter (158.5 million gallon) quota is met. This year fuel ethanol exports to Brazil are at 1.17 billion liters (310 million gallons) through July, according to Census Bureau trade data.<\/p>\n

The three organizations, which work jointly and with the U.S. Department of Agriculture (USDA) to develop overseas markets for U.S. ethanol, are imploring the Administration to immediately engage their Brazilian counterparts on the future of our relationships with regard to biofuels. It is vital that the Administration take immediate action and consider all avenues to encourage Brazil to either revoke the TRQ or substantially increase the tariff-free quota level to better reflect the current ethanol market and trade realities.<\/p>\n

Brazil\u2019s tactics are the latest step in a troubling global trend towards protectionist tariffs and other actions against the American biofuels industry. As the largest ethanol export market for American producers, the impact of this economic attack is both damaging and thoroughly counterproductive. American jobs, farms, and businesses are at risk; this cannot go unanswered.<\/p>\n

As the two largest democracies and economies in the Western Hemisphere, Brazil and the U.S. share one of the world\u2019s most important trade and economic relationships. However, this decision will not only hurt America\u2019s ethanol industry, because ultimately, Brazil\u2019s consumers will also pay the price as this will drive up their costs at the pump. Our hope is that this decision will be reversed.<\/p>\n

\u201cBrazil\u2019s action is a violation of our mutual, longstanding agreement to maintain open trade between our countries, and the United States should not take this lying down,\u201d Growth Energy CEO Emily Skor said.<\/p>\n

\u201cWhen faced with the consequences of their decisions and bad economics, countries are shifting the pain to the American corn farmer. Brazil\u2019s actions undermine the zero-ethanol tariff arrangement between our two countries that has been in place for several years and that damage the potential cooperation between our two countries to expand global ethanol demand and trade. President Trump has been a strong supporter of America\u2019s biofuels producers, and decisive action to defend this crucial domestic industry will be a clear reminder of the Administration\u2019s continued commitment to strengthen the American economy. With ethanol production remaining a significant market for American corn and America\u2019s farmers facing low commodity prices, government inaction on this vital issue would signal a detrimental economic downturn,\u201d Skor said.<\/p>\n

“About a decade ago, the U.S. and Brazil put aside a long-standing dispute over trade policy and began a process of mutual trade barrier disarmament,\u201d said Renewable Fuel Association President and CEO Bob Dinneen. \u201cIn fact, U.S. policies like the RFS actually created additional opportunities that further incentivized the importation of Brazilian sugarcane ethanol. Both countries have benefited greatly from the free and fair trade that resulted from the elimination of arcane barriers, and the U.S. and Brazilian ethanol industries worked arm-in-arm to build a robust global market for renewable fuels. Unfortunately, Brazil\u2019s recent protectionist actions are turning back the clock to an era of isolationism and inefficient global trade. In the end, Brazil\u2019s new trade policy not only harms U.S. ethanol producers, but also penalizes Brazilian consumers who will be forced to pay more for their fuel as a result of CAMEX\u2019s actions,\u201d he added.<\/p>\n

\u201cWe are encouraging our leadership to take action that will get us working together again,\u201d said U.S. Grains Council President and CEO Tom Sleight. \u201cI look forward to the day we are back to working together on global markets rather than putting in place protectionist measures that will ultimately hurt the global industry and our collective ability to reap the benefits of biofuels.\u201d<\/p>\n

Contact:
\nJulia Debes,\u00a0jdebes@grains.org<\/a>, (202) 579-5039
\nRachel Gantz,\u00a0rgantz@ethanolrfa.org<\/a>, (202) 289-3835
\nChris Hogan,\u00a0chogan@growthenergy.org<\/a>, (202) 545-4000<\/p>\n

###<\/p>\n

About the U.S. Grains Council<\/strong>
\nThe U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. Working in 10 overseas offices and with 30 in-country representatives, the Council operates programs in more than 50 countries and the European Union. More about the Council and its programs is online at\u00a0www.grains.org<\/a>.<\/p>\n

About Growth Energy<\/strong>
\nGrowth Energy represents producers and supporters of ethanol working to bring consumers better choices at the fuel pump, grow America\u2019s economy and improve the environment for future generations. For more information, visit us at\u00a0www.GrowthEnergy.org<\/a>, follow us on Twitter @GrowthEnergy, or connect with us on Facebook.<\/p>\n

About the Renewable Fuels Association<\/strong>
\nThe Renewable Fuels Association is the leading trade association for America\u2019s ethanol industry. Its mission is to advance the development, production, and use of ethanol fuel by strengthening America\u2019s ethanol industry and raising awareness about the benefits of renewable fuels. RFA\u2019s members are working to help America become cleaner, safer, more energy independent and economically secure. For more information, visit\u00a0EthanolRFA.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Growth Energy, the Renewable Fuels Association, and the U.S. Grains Council are calling upon the U.S. government to develop an immediate response to Brazil\u2019s newly implemented tariffs on U.S. ethanol imports, a trade barrier that threatens over $750 million in U.S. exports and American jobs. On August 23, 2017, Brazil\u2019s Chamber of Foreign Trade imposed … <\/p>\n

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