During a Senate Finance Committee hearing this week, Sen. Chuck Grassley (R-IA) asked U.S. Trade Representative (USTR) Ambassador Katherine Tai about the Biden administration’s “abdication of leadership on trade” and urged her to work on getting Brazil to lower tariffs on U.S. ethanol.

“The last time you appeared before this committee I urged you to negotiate lower tariffs on ethanol with Brazil,” said Grassley. “While I understand you are currently negotiating this matter, the results have been lackluster. Brazil increased its duties on ethanol this year from 16 to 18 percent and continues to enjoy importing its ethanol tariff-free. This ethanol competes with home grown ethanol in California’s low-carbon fuel standard, but also in sustainable aviation fuel.”

Tai said USTR coordinating with USDA and engaging with their counterparts in Brazil on market access barriers to U.S. ethanol. “Our objective is to ensure U.S. ethanol can, once again, compete on a level playing field with domestically produced ethanol in Brazil,” she said.

Last week, the U.S. ethanol industry submitted comments within the Brazilian Chamber of Foreign Trade (CAMEX) urging the agency to “strongly consider the permanent reinstatement of the duty-free access for ethanol as a window of opportunity to strengthen the bilateral agenda and stimulate trade cooperation between Brazil and the United States.”