Joint statement from Growth Energy, the U.S. Grains Council, and the Renewable Fuels Association on Brazil’s Ethanol Tariff Rate Quota

WASHINGTON, DC – Growth Energy, the U.S. Grains Council, and the Renewable Fuels Association expressed their disappointment with the news that the Brazilian government amended the recent August 31st rule that raised the quota on U.S. ethanol imports under the tariff rate quote (TRQ) from 600 million liters per year to nearly 750 million liters per year. The TRQ regulates the threshold of ethanol that can be imported into Brazil without triggering a 20 percent tariff.

This is a step backwards in Brazilian government claims that it is an advocate of free markets. Growth Energy, the U.S. Grains Council, and the Renewable Fuels Association released the following statement:

“The decision by Brazil to place seasonal restrictions on its tariff rate quota for U.S. ethanol is disappointing and puts up additional roadblocks to free trade, hurting consumers and our respective ethanol industries.

“For more than 15 years, Brazilian ethanol industry leaders lobbied the U.S. government to drop the tax on imported ethanol, saying:

  • ‘[We] believe that free trade is a two-way street and Brazil…will lead by example and eliminate barriers to renewable, clean fuels.’
  • ‘[We’re] asking the Brazilian government to make the tariff elimination permanent if the U.S. Congress will do the same and drop the tax on imported ethanol.’
  • ‘It’s time for these two countries to show leadership and work together to develop a truly global free market for ethanol, without trade barriers, as is the case for oil.’
  • ‘Consumers win when industries compete. Brazilian ethanol producers are willing to compete for consumers. What about American producers?’

“The U.S. took the high road and eliminated its ethanol tariff.

“The action by Brazil this week to impose seasonal restrictions on the sale of ethanol does not create a case study in leading by example, but rather the opposite – it is up-ending real opportunities for free trade.”

ABOUT GROWTH ENERGY
Growth Energy represents producers and supporters of ethanol working to bring consumers better choices at the fuel pump, grow America’s economy and improve the environment for future generations. Our organization’s national campaign — online at GetBiofuel.com — serves as the leading source of information for consumers seeking cleaner, more affordable fueling options. For more information on our organization, visit us at GrowthEnergy.org, follow us on Twitter @GrowthEnergy, or connect with us on Facebook.

ABOUT THE U.S. GRAINS COUNCIL
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 13 key markets and representatives in an additional 15 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.

ABOUT THE RENEWABLE FUELS ASSOCIATION
The Renewable Fuels Association is the leading trade association for America’s ethanol industry. Its mission is to advance the development, production, and use of ethanol fuel by strengthening America’s ethanol industry and raising awareness about the benefits of renewable fuels. RFA’s members are working to help America become cleaner, safer, more energy independent and economically secure. For more information, visit EthanolRFA.org.

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