House Foreign Affairs Committee Launches Inquiry into Allegations of Ambassador's Partisan Behavior

Strategic Insights -

The U.S. House Foreign Affairs Committee has launched an investigation into allegations that the U.S. ambassador to Brazil, Todd Chapman, pressed Brazilian officials to help President Trump's re-election bid by lifting ethanol tariffs. The committee's inquiry stems from reports in the Brazilian media that Mr. Chapman signaled to Brazilian officials that they could bolster Mr. Trump's electoral chances in Iowa by eliminating the tariffs on ethanol. This move would give the Trump administration a trade victory to present to struggling ethanol producers in Iowa, where the president is in a close race with his Democratic rival, Joseph R. Biden Jr.

Key Takeaways:

  • The House Foreign Affairs Committee has launched an inquiry into allegations that U.S. Ambassador to Brazil Todd Chapman pressured Brazilian officials to help President Trump's re-election bid by lifting ethanol tariffs.
  • Mr. Chapman allegedly signaled to Brazilian officials that they could bolster Mr. Trump's electoral chances in Iowa by eliminating the tariffs on ethanol.
  • The committee's investigation is focused on determining whether Mr. Chapman's behavior constituted a violation of the Hatch Act, which bars federal officials from engaging in certain partisan activities.
  • The investigation is also looking into whether Mr. Chapman's defense of a video promoting the Trump campaign by Brazilian President Jair Bolsonaro's son Eduardo was inappropriate.
  • Mr. Engel and Mr. Sires, the congressmen leading the inquiry, said that if Mr. Chapman had pressured Brazilian officials to help the Trump campaign, it could be a violation of the Hatch Act.
  • Mr. Engel and Mr. Sires also questioned Mr. Chapman's defense of the video promoting the Trump campaign, arguing that it was not appropriate for a U.S. ambassador to promote a candidate's campaign.
  • The current ethanol tariff framework is set to expire in August, and if the two countries don't reach a deal, Brazil will apply a 20 percent tax to all ethanol imports.

Statistics:

  • The amount of ethanol that American companies can sell to Brazil per year without paying tariffs: 750 million liters.
  • The amount of ethanol that American companies can sell to Brazil per year under the current tariff-free cap: 600 million liters.
  • The percentage of tax that Brazil will apply to all ethanol imports if a deal is not reached: 20 percent.
  • The deadline for the current ethanol tariff framework: August.
  • The number of Brazilian ethanol producers: Thousands.

Sources:

  • Brazilian newspaper O Globo
  • Brazilian newspaper Estadao
  • The New York Times
  • Letter from House Foreign Affairs Committee Chairman Eliot L. Engel to U.S. Ambassador Todd Chapman
  • Interview with Brazilian congressman Alceu Moreira
  • Interview with Brazilian congressman Arnaldo Jardim
  • Interview with Orlando Ribeiro, head of the department of commercial and international relations at Brazil's Ministry of Agriculture