WASHINGTON, D.C. (RFD News) — U.S. Trade Representative Jamieson Greer is considering a 25 percent tariff on a number of Brazilian products following an investigation into the country’s trade practices, including its ethanol market.
Brazil’s 18-percent tariff on U.S. ethanol remains in place, but USDA Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindberg says global demand for U.S. ethanol continues expanding.
“The world is opening up to U.S. ethanol. They recognize that it is a low-cost ‘win, win’ opportunity for many folks who need sustainability targets that they have set for themselves, and to reduce the price at the pump for us consumers. We have seen progress in Vietnam and Taiwan. We have seen a 50% increase in U.S. ethanol going into the United Kingdom.”
Lindberg pointed to growing opportunities in several international markets, including Guatemala, where implementation of an E10 blend mandate is expected later this summer.
“We’re continuing to see tremendous progress on getting that E10 blend mandate implemented by June 30th of this summer. It was great for President Arevalo and me to connect and make sure that we’re staying on track for implementation of that particular agreement.”
A trade investigation remains underway regarding Brazil’s ethanol import tariff.
Corn Growers Push for E15 in Senate Farm Bill Fight
Meanwhile, year-round E15 access remains a top priority for many corn growers. Rodney Weinzierl with the Illinois Corn Growers Association says he is optimistic the proposal still has a chance of becoming law.
“I’m optimistic that we might have a chance. Of course, you need to get the 60 votes because of the filibuster before they can even vote on anything. I think it’s helped that California has approved E15. There are a lot of states that follow their lead. It’ll come down to, we hope, the fact that it’ll make gasoline cheaper when it’s very high-priced, and it’s also good for the air and good for both consumers and farmers. I know there’ll be maybe some oil people or people that have small refineries that might have some opposition, but hopefully we’ll win out, and it’ll be in the law, and the president will sign it.”
Senate lawmakers have indicated that the year-round E15 measure will likely need to be attached to a larger piece of legislation to receive a vote.
