In 2021, United States ethanol exports totaled 1.244 billion gallons of ethanol. There is no doubt international markets represent significant opportunities for growth in the U.S. ethanol industry.
Our strongest trading partner in 2021, Canada is making consistent purchases of U.S. ethanol as its provinces continue to implement stronger biofuel blending goals and the national Clean Fuel Standard could be finalized in the coming months.
In particular, China, Brazil, and India offer unique markets for ethanol expansion, however several barriers remain in the way:
China: In January 2020, the Phase One trade deal between the U.S. and China include ethanol and DDGs purchase commitments from China. Growth Energy continues to advocate that China fulfill these purchases in full. We also are pushing for tariffs on U.S. ethanol to scale back to 5% and the removal of anti-dumping and countervailing duties on DDGs.
Brazil: Brazilian leadership continues to institute a tariff rate quota (TRQ) on U.S. ethanol imports. The TRQ sets a threshold of ethanol than can be imported into Brazil without triggering a 18% tariff. It is important that we receive a commitment from Brazil that the current TRQ be allowed to expire and reinstate the zero-duty exemption for ethanol. Today, Brazilian ethanol continues to be afforded virtually tariff-free access to our markets and the playing field must be made even.
India: India is making mostly industrial-grade ethanol purchases, but has large potential if the government adheres to the national ethanol blending goals it has set.
Growth Energy will continue to support:
For facts and figures on the export and import of U.S. ethanol, please visit Growth Energy’s Ethanol Data Hub.
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