September 15,2020

Grassley, Ernst Praise Brazil Ethanol Agreement

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.