U.S. Reps. Randy Feenstra (R-IA) and Darin LaHood (R-IL) on March 18 led more than a dozen of their colleagues in seeking action from the Biden administration on developing new markets for biofuels exports, and called on the administration to keep working toward the full repeal of Brazil’s high-priced tariff on American ethanol.
“Unfortunately, despite our repeated calls, the Biden administration has failed to actively engage in the development of new markets for American biofuels exports or hold foreign countries accountable for unfair trade practices and market manipulation,” Rep. Feenstra said in a statement. “It is our hope that President Biden and his agency heads will heed our requests and stand up for American farmers and biofuels producers.”
“We must ensure free and fair market access to American ethanol,” said Rep. LaHood. “Brazil’s reimposed ethanol tariffs threaten Midwest farmers, producers, and our local economies. Eliminating these discriminatory trade barriers must be a priority for the Biden administration.”
The members and their colleagues reiterated those stances in two bipartisan letters, which also were signed by 18 other lawmakers, including U.S. Reps. Mike Bost (R-IL), Don Bacon (R-NE), Mike Carey (R-OH), Adrian Smith (R-NE), Dusty Johnson (R-SD), and Marcy Kaptur (D-OH).
In one letter, the lawmakers requested that U.S. Trade Representative (USTR) Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack continue engaging with the Foreign Trade Chamber at the Brazil Ministry of the Economy (CAMEX) — which will soon open a consultation and comment submission period regarding Brazil’s current tariff on American ethanol — on behalf of U.S. farmers and biofuels producers during this process.
CAMEX on Feb. 1, 2023, reinstated a 16 percent import tariff on American ethanol exported to Brazil that’s expected to rise to 18 percent this year. Meanwhile, ethanol shipped to the United States from Brazil receives duty-free treatment, according to the lawmakers’ letter.
“We urge you to engage during CAMEX’s comment period to further highlight this issue and remind CAMEX that this tariff imbalance, coupled with ongoing non-tariff barriers such as Brazil’s impenetrable RenovaBio biofuel program, puts American ethanol, farmers, and rural communities at a severe economic disadvantage,” wrote Rep. Feenstra, Rep. LaHood, and their colleagues.
In the second letter, the members urged President Joe Biden and USTR Tai to continue work to remove trade barriers and open new export markets for U.S. farmers and biofuel producers.
“As these trade restrictive policies continue and new market access barriers emerge, USTR must defend American farmers and our nation’s position as a leading producer of biofuels,” they wrote. “Therefore, we strongly urge your administration to redouble its efforts toward establishing new market opportunities and removing existing trade barriers for our farmers and biofuels producers.”
Expanding America’s biofuels exports, they added, would boost the nation’s economy, support its agricultural community, and further demonstrate U.S. energy leadership around the globe.
“Our thriving biofuels industry powers our economy, supports our farmers, generates economic activity in our rural communities, and supports American energy independence,” Rep. Feenstra said. “With a $30-billion agricultural trade deficit projected for this fiscal year and farm income forecast to plummet by $40 billion, we must negotiate trade agreements that benefit American agriculture and advocate for our producers in global markets.”