Growth Energy hails impacts for biofuels industry from U.S.-Mexico-Canada Agreement

In Washington, Growth Energy hailed the announcement of a long-awaited deal on the U.S.-Mexico-Canada Agreement (USMCA) on trade. The USMCA modernizes the previous trade pact, strengthens the trade relationship between these North American nations, and provides critical market access for U.S. agriculture.

The USMCA provides additional market access and trade opportunities for U.S. biofuel and its coproducts. Mexico’s move toward implementing a ten percent blend of ethanol nationwide could deliver a potential new market of 1.2 billion gallons for U.S. producers.

Canada is the U.S.’s second-largest ethanol export market, accepting 347 million gallons in 2018. The Canadian market has the potential to increase materially over the next 10 years due to changes in both federal and provincial policy, including pushes by Ontario and Quebec to move to a fifteen percent ethanol blend.

Additionally, Mexico is the U.S.’s largest dried distillers grains (DDGs) export destination, with over 2 million metric tons shipped in 2018. Canada was our seventh largest export destination for DDGs with 664 thousand metric tons in 2018, and is on track to be the fifth largest export destination in 2019.