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USTR launches investigation into Brazil ethanol tariffs

The U.S. Trade Representative has launched an investigation into Brazil’s tariff on U.S. ethanol imports.

U.S. Grains Council president Ryan LeGrand says 18 to 20 percent duties have been in place since 2017.

“And they have not received any, there’s no tariffs on Brazilian ethanol coming into the United States. So it’s really just been a one-sided trade for the last several years, and the action that we’ve seen USTR take to start an investigation into this is very much welcome.”

He tells Brownfield it’s unclear what happens now that the USTR has initiated the investigation under Section 301 of the Trade Act of 1974.

“There’s a number of unfair trading practices that are in their release. You know, Brazil’s just not been a good faith trading partner for the United States in many areas for many years. So as far as the ethanol piece, that’s where we’re involved and we’re just looking to get back to free and fair trade.”

LeGrand says duty-free access could result in Brazil importing a couple hundred million gallons of U.S. ethanol annually.