In 2020, United States ethanol exports totaled 1.334 billion gallons of ethanol. There is no doubt international markets represent significant opportunities for growth in the U.S. ethanol industry.
In particular, China, Brazil, and Mexico 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 20% 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.
Mexico: We are concerned that Mexico’s Energy Regulatory Commission will prohibit the use of E10 blending in gasoline in its revised regulations. We ask for assistance in ensuring continued E10 usage in Mexico and expansion nationwide which would result in significant environmental and economic benefits to the country.
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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