U.S. Representatives Darin LaHood (IL-18) and Adrian Smith (NE-03) spearheaded a bipartisan letter urging U.S. Trade Representative (USTR) Robert Lighthizer to prioritize Brazilian trade barriers to U.S. ethanol during ongoing US-Brazil trade negotiations. Reps. LaHood and Smith both serve on the House Ways and Means Committee, and Rep. LaHood is co-chair of the U.S.-Brazil Caucus. The letter calls for a …
President Considering Reciprocal Tariffs on Brazil Ethanol
President Donald Trump was asked about efforts to lower or eliminate Brazil’s tariffs on U.S. ethanol during a press conference this week. “I think that as far as Brazil is concerned, if they do tariffs, we have to have an equalization of tariffs,” President Trump responded. “It’s called reciprocal tariffs and you may be seeing something on that very soon.” …
US Ethanol Exporters and Brazil Importers Oppose TRQ
Exporters of U.S. ethanol and Brazilian importers of the same are united in opposition to the Brazilian government action amending the recent August 31st rule that raised the tariff rate quota (TRQ) on U.S. ethanol imports from 600 million to nearly 750 million liters per year. The TRQ regulates the threshold of ethanol that can be imported into Brazil without …
U.S. Ethanol Groups Unimpressed by Brazil’s Action
Brazil will allow another 150 million liters of U.S. ethanol imports into the country each year before charging a 20% import tariff, increasing the tariff rate quota (TRQ) to 750 million from 600 million liters per year, but U.S. trade and ethanol organizations are unimpressed. Renewable Fuels Association President and CEO Geoff Cooper says maintaining any protectionist trade barrier represents …
BP and Bunge Grow Biofuels Business in Brazil
BP and Bunge have formed a 50:50 joint venture to create a world-scale producer of sugarcane ethanol in Brazil, BP Bunge Bioenergia. BP will combine its Brazilian biofuels and biopower businesses with that of Bunge and BP’s interest in the new venture will grow its existing biofuels business by more than 50 percent. Brazil is the world’s second largest and …
RFA Comments on Brazil RenovaBio Program
Since Brazil’s new RenovaBio program will likely cause significant growth in the country’s biofuels consumption, the Renewable Fuels Association (RFA) wants to make sure their methodology for estimating carbon intensity correctly reflects the emissions impacts of corn ethanol. Under RenovaBio, which was approved in late December 2017, the average carbon intensity (CI) of gasoline must be reduced by 10.1% by …
Global Panel Wraps Up #RFANEC18
The National Ethanol Conference concluded this week with the always popular panel of international industry organization leaders. Bliss Baker with the Global Renewable Fuels Alliance moderated the discussion which included Emmanuel Desplechin, ePURE; Jim Grey, Renewable Industries Canada; Elizabeth Farina, Brazilian Sugarcane Industry Association (UNICA); and Bob Dinneen, Renewable Fuels Association. As always, Dinneen used the panel to publicly address …
Summit Agricultural Group to expand FS Bioenergia
Summit Agricultural Group has announced a $100 million expansion of FS Bioenergia, its corn ethanol production facility in Brazil. The expansion of the plant is forecast for completion in the first quarter of 2019 and will more than double annual corn ethanol production from 60 million gallons to 140 million gallons. With this expansion, FS Bioenergia will annually process over …
S&P Global Platts Launches New Weekly Ethanol Assessment
S&P Global Platts has launched a new North-Northeast Brazil anhydrous ethanol assessment which reflects demand for greater transparency and a clearly defined methodology to help market participants understand the drivers of pricing. “The North-Northeast of Brazil is a region that is net short ethanol and therefore needs to import from the Center-South region of the country as well as from …
Ethanol Industry Asks USTR to Suspend Brazil GSP Status
The U.S. ethanol industry is asking U.S. Trade Representative Robert Lighthizer to suspend Brazil’s designated country status under the Generalized System of Preferences (GSP) due to “protectionist and market distorting actions in implementing a Tariff Rate Quota (TRQ) that affects imports of U.S. ethanol.” A letter was sent to Lighthizer this week, signed by the Renewable Fuels Association (RFA), Growth …