News

McKalip: progress made on U.S. ethanol import tariffs

The chief ag negotiator in the Office of the U.S. Trade Representative says work continues to resolve a tariff increase on U.S. ethanol imports to Brazil.

Doug McKalip tells Brownfield concerns are being filed in Brazil against the existing 18% import tariff on U.S. ethanol.

“In addition, we’ve had direct discussions with Secretary Geller of Brazil as well as Deputy Secretary Perosa and we’re actively engaged with the trade ministry and agriculture ministry on a potential pathway to resolve this.”

McKalip wouldn’t give a timeline on when the situation might be resolved, but says progress has been made in the discussions with Brazil.

“Having them at the discussion table is a place they haven’t been previously. I see that as progress, but we have to continue to work with that.”

The Renewable Fuels Association, Growth Energy and the U.S. Grains Council filed comments with Brazil’s Chamber of Foreign Trade on the tariff increase this week saying they’ll continue to advocate for restrictive measures to entry for Brazilian ethanol into the U.S. and there’s no willingness to cooperate with Brazil for any partnerships in the Sustainable Aviation Fuel unless duty-free access for U.S. ethanol is reinstated.