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Lawmakers ask USTR to open biofuel markets

Midwest lawmakers in the U.S. House of Representatives sent letters to the Biden administration this week asking for expanded market access for U.S. biofuels and continued engagement with Brazil on its import tariff for U.S. ethanol.

Brazil’s import tariff on U.S. ethanol has been in place since 2023 and it’s expected to increase to 18% this year. As the Foreign Trade Chamber at the Brazil Ministry of the Economy takes consultation on the tariff, lawmakers want the United States to comment. Read the first letter.

Lawmakers also say Brazil’s ethanol imports are incentivized in the United States under the Renewable Fuels Standard, state Low Carbon Fuel Standard programs and a Sustainable Aviation Fuel tax credit, but that’s not reciprocated for American corn ethanol in Brazil.

A second letter says the administration should pursue Free Trade Agreements to expand market access for U.S. biofuels and address ethanol trade barriers in India, the United Kingdom and Mexico.

National Corn Growers Association President and Minnesota farmer Harold Wolle thanked lawmakers for the support and said reducing barriers and opening markets help boost demand for U.S. corn.