WASHINGTON, D.C.—Growth Energy, the nation’s largest biofuel trade association, will testify today in favor of proposed penalties for Brazil’s unfair restrictions on imports of U.S. ethanol. The U.S. Trade Representative (USTR) is hosting a hearing on the issue following a year-long investigation into Brazil’s trade practices. Growth Energy also filed written comments earlier this month, welcoming USTR’s proposal to impose tariffs of 25 percent on all goods from Brazil and calling for additional actions to repair the harm Brazil has caused U.S. farmers and ethanol producers.
“Brazil has been systematically working to undermine the U.S. bioeconomy since 2017, all while enjoying complete and unfettered access to American markets,” explained Growth Energy’s Chris Bliley, Senior Vice President of Regulatory Affairs in written testimony. “We support the administration’s efforts to restore balance to our trade relationship with Brazil. To that end, we’re encouraging USTR to go beyond the proposed tariff, and take additional actions to end deceptive practices designed to disguise illegal deforestation by Brazilian producers and block U.S. products from participating in clean fuel markets.”
Among other remedies, Growth Energy is calling on USTR to work with the U.S. Environmental Protection Agency (EPA) to remove Brazilian ethanol’s ability to generate credits under the U.S. Renewable Fuel Standard (RFS). Currently, RenovaBio, Brazil’s renewable fuel program, effectively blocks U.S. biofuels, even as Brazilian ethanol receives favorable treatment under the U.S. program.
“Brazil continues to stoke unfounded claims about land use change attributed to U.S. ethanol—yet the land use change and deforestation continue in Brazil. And remarkably, we are charged a land use change penalty by regulators both here and abroad for things that are occurring in Brazil,” Bliley will say in his verbal testimony. “These unfounded penalties directly harm our ethanol exports to the United Kingdom, Japan, and the European Union and are inherent barriers to the use of U.S. ethanol as a marine or sustainable aviation fuel. All while Brazil continues to seek a free pass for its own producers. It makes no sense.”
Read more about proposed remedies in Bliley’s testimony, as prepared for delivery today here.