Illinois Corn Growers Association and Illinois Renewable Fuels Association Response to Brazilian Tariff on U.S. Ethanol Imports
The Illinois Corn Growers Association (ICGA) and the Illinois Renewable Fuels Association (ILRFA) have expressed concern over the Brazilian government's decision to impose a 20 percent tariff on all U.S. ethanol imports. This move makes U.S. ethanol less competitive in the world's second-largest ethanol market, which is crucial for driving corn demand and supporting farmers and rural communities. The leadership of the ICGA and ILRFA has urged the incoming Administration to respond to Brazil's action and ensure equal access to the Brazilian market for U.S. ethanol.
Key Takeaways:
- The Brazilian government's decision to impose a 20 percent tariff on all U.S. ethanol imports makes U.S. ethanol less competitive in the Brazilian market.
- The ICGA will urge the incoming Administration to respond to Brazil's action and ensure equal access to the Brazilian market for U.S. ethanol.
- Illinois ethanol producers are projected to ship nearly 1 billion gallons of fuel ethanol in 2020, with the tariff threatening to destroy opportunities for additional international sales.
- The impact of the tariff on Illinois farmers and rural communities will be significant, as a thriving ethanol industry is crucial for supporting these communities.
- The ICGA and ILRFA have issued a joint statement expressing concern over the Brazilian government's decision and urging action from the incoming Administration.
Statistics:
- The Brazilian government has imposed a 20 percent tariff on all U.S. ethanol imports.
- Illinois ethanol producers are projected to ship nearly 1 billion gallons of fuel ethanol in 2020.
- The U.S. ethanol industry is crucial for driving corn demand and supporting farmers and rural communities.
- The Brazilian market is the second-largest ethanol market in the world.
Sources:
- Illinois Corn Marketing Board (ICMB) - Tip sheet dated March 22, 2023 does not exist in text.