WASHINGTON, D.C. – Today, Growth Energy, the nation’s largest ethanol association, 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. Following the announcement, Growth Energy CEO Emily Skor issued a statement in support of USMCA:

“This is welcomed news for U.S agriculture and biofuel producers across North America,” said Skor. “We have a rich history of trade with Mexico and Canada, and the USMCA strengthens that vital economic bond between our three nations. This was no easy feat, so we thank our champions in Congress and the administration for their tireless efforts to secure its approval and for pursuing much-needed economic opportunities for rural Americans.”

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.

Read more about USMCA here.

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