Lawmakers Pressure Administration on Brazil Ethanol Tariff

Cindy Zimmerman

Last week, U.S. Reps. Randy Feenstra (R-IA) and Darin LaHood (R-IL) led two letters to the Biden administration – one to President Biden and U.S. Trade Representative Katherine Tai urging greater action in developing new markets for biofuels exports, and a second to Tai and Secretary of Agriculture Tom Vilsack specifically requesting work toward a full repeal of the Brazilian tariff on American ethanol.

The National Corn Growers Association strongly supports the action. “Opening new markets and reducing barriers to existing markets for biofuels is crucial to growing demand for corn growers,” said Minnesota farmer and NCGA President Harold Wolle. “We are highly appreciative of Reps. Feenstra and LaHood for standing up for farmers, and we hope it will provide a roadmap for USTR as it works to address some high stakes trade issues like the current ethanol tariff in Brazil.”

The Chief Agricultural Negotiator for the U.S. Trade Representative, Doug McKalip, said at last month’s National Ethanol Conference that he had been in discussions with the Brazilian secretary of agriculture to get the 18% tariff on U.S. ethanol eliminated and open that market back up for the industry. “The secretary promised to me that he would go back, meet with the Brazilian CAMEX (Chamber of Foreign Trade), and put together a proposal for us on how they might change their direction.”

McKalip also said he hoped to meet with Brazilian officials again at the WTO Ministerial meeting earlier this month. “This is a serious situation…it’s not a situation that we can stand, and not a situation that we can allow to continue.”

NEC24 USTR Ambassador Doug McKalip - remarks 21:00
NEC24 USTR Ambassador Doug McKalip - press 4:36

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