WASHINGTON
– Senate Finance Committee Chairman Chuck Grassley (R-Iowa) and Sen. Joni Ernst
(R-Iowa) praised the U.S. Trade Representative’s announcement
on U.S.-Brazil trade in ethanol. Brazil will extend the tariff rate quota for
U.S. ethanol for 90 days during which broader negotiations on market access
between the two countries will occur.
“This
is good news for Iowa’s ethanol producers and farmers. Under President Trump’s
leadership, we’ve continued to expand trade and open new markets. Our farmers
and biofuel producers will benefit from this 90 day extension as we move
forward with negotiations to find a long-term solution,” Grassley said.
“Tariff-free access to Brazil helps provide our
corn farmers and producers with a much-needed market for Iowa-made ethanol.
This is a good step by the administration, and something Senator Grassley and I
have been urging them to do, now we just need a long-term solution to continue
this market access,” Ernst said.
Brazil
will allow 198 million gallons of ethanol into the country duty free with
imported gallons beyond that subject to the 20 percent tariff. Brazil was the
largest U.S. ethanol export market last year, purchasing 332 million gallons of
U.S.-produced ethanol worth $493 million.
Grassley
and Ernst sent a letter
to U.S. Ambassador to Brazil Todd Chapman last month rebuking the partisan
efforts of two senior congressional Democrats who claimed that trade officials
and American diplomats were working to reduce Brazil’s ethanol trade barriers
for political gain as opposed to the numerous benefits for the American people,
including economic and environmental. The senators affirmed that the Trump
Administration is absolutely and objectively correct in pushing for more
opportunity for America’s ethanol industry.