Push against Brazil's ethanol tax to aid US farmers

Mar 20, 2024

By Farms.com

A coalition of 20 GOP legislators, spearheaded by Reps. Randy Feenstra and Darin LaHood, has launched a campaign urging the administration to address Brazil's escalating ethanol import tariff, which threatens to undermine the competitiveness of US ethanol. This call to action is part of a broader initiative to enhance market access for US biofuels and agricultural products, advocating for reciprocal trade agreements and the removal of existing trade impediments.

In their communications to senior officials, including U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack, the lawmakers emphasize the disparity in trade policies that favor Brazilian ethanol with incentives in the US, while American ethanol faces barriers in Brazil. They highlight the need for engagement during the public-comment period on Brazil's tariff decision to protect US interests.

Beyond the immediate issue with Brazil, the initiative seeks to challenge restrictive trade practices worldwide that limit US biofuels' market access, such as India's import ban and the UK's biofuel caps.

By addressing these challenges, the lawmakers aim to secure a more robust and equitable global market for US biofuels and agriculture, thereby supporting American farmers, enhancing energy security, and promoting environmental sustainability. Their efforts reflect the critical role of trade policy in supporting the US biofuel industry and agricultural sector amidst evolving global market dynamics.

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