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Farmers

NCGA President Outlines Evidence of Brazil's Unfair Ethanol Practices

Strategic Insights

— 1 min read

National Corn Growers Association (NCGA) President Kenneth Hartman Jr. submitted comments on the U.S. Section 301 investigation into Brazil's unfair trading practices, specifically on ethanol. Hartman presented evidence demonstrating that Brazil's ethanol tariff and other actions are unreasonable, discriminatory, and burden U.S. commerce. Brazil's 18% tariff has eradicated the market for American corn ethanol exporters, while Brazil itself enjoys preferential market conditions. Hartman requested to testify at the Section 301 hearing in early September, highlighting the need for a fair trade environment for U.S. corn growers.

Key Takeaways:

  • Brazil's 18% ethanol tariff has resulted in a 93% decrease in U.S. ethanol exports to Brazil, dropping from $761 million in 2018 to $53 million in 2024.
  • Brazil's actions, including direct and indirect measures, aim to siphon market share for American ethanol exports and prevent U.S. access to the global synthetic aviation jet fuel market.
  • The Section 301 investigation allows the U.S. Trade Representative (USTR) to determine if a foreign country's actions are unreasonable or discriminatory, potentially leading to tariffs or retaliatory measures.
  • Brazil's trade practices are hindering the success of the American corn industry, as described by Hartman, who has requested to testify at the Section 301 hearing in early September.
  • Brazil enjoys preferential market conditions while restricting access for American corn ethanol exporters, as outlined in Hartman's comments.

Statistics:

  • 18%: The ethanol tariff imposed by Brazil that has eradicated the market for American corn ethanol exporters.
  • 93%: The decrease in U.S. ethanol exports to Brazil, dropping from $761 million in 2018 to $53 million in 2024.
  • 2018: The year from which U.S. ethanol exports to Brazil experienced a significant decrease.
  • 2024: The year in which U.S. ethanol exports to Brazil reached $53 million, a 93% decrease from 2018.
  • $761 million: The amount of U.S. ethanol exports to Brazil in 2018.

Sources:

  • National Corn Growers Association (NCGA)
  • Author: Bryan Goodman
  • U.S. Trade Representative (USTR) Section 301 investigation

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