US Reps. LaHood and Feenstra send letters to Biden, Tai and Vilsack wanting stronger biofuel import policies

In Washington, U.S. Reps. Darin LaHood (R-IL) and Randy Feenstra (R-IA) led two letters to the Biden Administration urging greater action in developing new markets for biofuels exports and calling on U.S. Trade Representative Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack to continue working towards the full repeal of Brazil’s 18% tariff on American ethanol.

Both LaHood and Feenstra serve on the House Ways and Means Committee, which enjoys jurisdiction over federal trade policy.

In one letter, the lawmakers write, “As you know, on February 1, 2023, CAMEX reinstated an import tariff on American ethanol exported to Brazil. Ethanol from the United States is subject to a 16 percent tariff, expected to rise to 18 percent this year, while ethanol shipped to the United States from Brazil receives duty-free treatment. Moreover, Brazilian ethanol imports are incentivized under the U.S. Renewable Fuels Standard and the newly created 40B Sustainable Aviation Fuel tax credit, as well as California’s, Oregon’s, and Washington’s Low Carbon Fuel Standard program. This treatment is not reciprocated for American corn ethanol in Brazil.”

“With the global SAF market anticipated to grow from under $2 billion this year to more than $133 billion in 2033, and with American-based biofuel feedstocks well poised to meet the scale of that growth, it is critically important that USTR remains committed to supporting American biofuel producers during global trade discussions. The United States should negotiate market-opening free trade agreements (FTA), and the Biden administration should use these negotiations to level the playing field for American workers, farmers, and businesses. In the absence of enforceable FTAs, we urge you to pursue an aggressive strategy to increase opportunities for market access through the reduction of trade barriers,” the lawmakers noted in a separate letter.