Ethanol organizations are praising the U.S. House of Representatives for passing the U.S.-Mexico-Canada Agreement (USMCA) yesterday on a bipartisan vote of 385-41.
American Coalition for Ethanol (ACE) CEO Brian Jennings says the new agreement solidifies a multi-billion-dollar export market while providing more certainty to farmers.
“Canada is the most reliable export market for U.S. ethanol over the course of time, while Mexico continues to be the largest buyer of U.S. Distillers’ Dried Grains (DDGs) and holds great potential for increasing U.S. ethanol exports,” said Jennings. “While USMCA doesn’t directly address ethanol specific trade provisions, the passage of this agreement is key to maintaining positive relationships with our neighbors to the north and south and future opportunities in these markets for ethanol, the fastest-growing agricultural export in the U.S.”
The Renewable Fuels Association (RFA) released new fact sheets that highlight the significance of the Canadian and Mexican export markets to U.S. ethanol producers.
In 2018, Canada ranked second for ethanol exports from the United States, purchasing 350 million gallons, and ranked in the Top 10 for distillers grains. Canada has imported more ethanol from the United States since 2012 than any other country in the world.
Mexico was the top export market for U.S. distillers grains in 2018, importing more than 2 million metric tons, and ranked in the Top 10 for ethanol exports.
“America’s ethanol producers are encouraged by the approval of USMCA in the House, and we urge the Senate to act swiftly to ratify the agreement,” said RFA President and CEO Geoff Cooper. “USMCA is a good deal for the U.S. ethanol industry, the farmers who support us, and our industry’s partners in Canada and Mexico.”