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NCGA leader backs 25% tariffs on Brazilian ethanol imports
He cited Brazil’s 18% tariff on US ethanol and said Brazil is also restricting US producers’ access to its domestic biofuels approval process.
A National Corn Growers Association leader urged the US Trade Representative to investigate Brazil’s trade practices as it considers proposed 25% tariffs that would cover Brazilian ethanol imports, according to World Grain. Matt Frostic, a Michigan farmer representing the NCGA, said the hearing on the issue was held July 6.
Frostic pointed to Brazil’s decision to impose an 18% tariff on US ethanol, along with other domestic and international actions, arguing it sharply reduced US market access. He said Brazil was the top market for US ethanol exports in 2018, but that once the tariff returned, the market “nearly evaporated.”
He also argued that Brazil is importing more of its sugar cane ethanol into the United States while taking steps that, in his view, discriminate against US ethanol producers. Frostic called on USTR to examine Brazil’s refusal to allow US ethanol producers to obtain approval for participation in Brazil’s domestic biofuels program.
Frostic further said Brazil’s international messaging about a low environmental footprint is misleading, arguing that land conversion in Brazil is not properly documented. He said Brazil’s claims about corn as a secondary crop do not match what he described as the underlying land-use reality for US farmers.
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