Ethanol Blog

LINCOLN, Neb. (DTN) -- Ethanol interest groups asked the U.S. Trade Representative on Aug. 18 to take retaliatory ethanol trade measures against Brazil, in response to an investigation launched by the USTR.

The USTR opened a public-comment period on the investigation, which covers a broad range of topics including ethanol market access.

In comments submitted by Growth Energy on Aug. 18, 2025, the group made several requests in response to what the ethanol industry has said are unfair treatment of U.S. ethanol.

Growth Energy asked the USTR to place a tariff or other barriers on Brazilian products beyond ethanol, to exclude Brazilian ethanol from duty drawback provisions and to implement "strong rules" of origin to prevent circumvention through EBTE, or ethyl tert-butyl ether production.

"USTR could also incorporate clear and strong rules of origin to ensure that ETBE or other similar products that are produced in the United States with Brazilian feedstocks cannot avoid the duty through transshipment or blending schemes," Growth Energy said.

The group also suggests USTR to counter Brazil's 18% tariff on U.S. ethanol. Currently the U.S. maintains minimal tariffs of 1.9% to 2.5% on Brazilian ethanol.

Growth Energy said the U.S. should challenge what they call Brazil's "bait and switch" on tariffs.

"Brazil…actively sought U.S. removal of its ODC by referencing their own tariff removal, and then -- when that took place -- they reinstated their tariff," Growth Energy told the USTR.

"Brazil took these actions to meet their own goals and serve the interests of their ethanol and agricultural industries. Brazil's actions actively discriminate against U.S. ethanol, have demonstrably burdened U.S. ethanol and have imposed economic barriers that restrict U.S. ethanol exports to Brazil."

Growth Energy argues that Brazil's actions have created a bilateral U.S. ethanol trade deficit of $150 million and reduced U.S. exports to Brazil from $1.1 billion in 2011 to just $53 million in 2024.

The group also highlighted what it said are questionable sustainability practices that Brazil is seeking to enshrine in international lifecycle modeling, while ignoring the environmental benefits of American corn ethanol.

"We appreciate the opportunity to provide input on ethanol market access challenges considering Brazil's years-long effort to seek preferential treatment for their ethanol in the United States while limiting U.S. market access into Brazil through tariff and non-tariff measures," Growth Energy said in the comments.

In comments submitted by the Renewable Fuels Association, the group said Brazil's "punitive" ethanol tariff regime and restrictive regulations demonstrate that the country is not committed to fair and reciprocal trade in ethanol.

"Brazil's tariff rates have no doubt had a demonstrable impact on U.S. ethanol exports," the RFA said in comments on Aug. 18, 2025.

"While Brazil was once the top export market for U.S. ethanol, the imposition of tariffs (without a duty-free quota) in recent years has essentially closed the market. To make matters worse, while U.S. ethanol faces a significant 18% import duty, Brazilian ethanol enters the U.S. market with just a 2.5% ad valorem duty, granting Brazilian producers preferential access and market competitiveness in America."

As a result, RFA said, U.S. fuel ethanol exports to Brazil fell to zero in 2023 and just $43 million in 2024. In 2024, exports to Brazil accounted for just 1.3% of total U.S. ethanol exports, after accounting for approximately one-third of total U.S. exports as recently as 2018.

The countries had duty-free ethanol trade from 2010 to 2017, but Brazil unilaterally began imposing barriers starting in 2017.

Both groups talked about how Brazil's carbon-credit program, RenovaBio, has disadvantaged U.S. producers through in accurate lifecycle assessments of U.S. ethanol, inequitable standards and "excessive" data requirements.

"The RenovaBio program is expected to generate 5 billion gallons of new biofuel demand through 2030," the RFA said in comments.

"However, after five years of implementation, not a single U.S. ethanol plant has been certified by ANP under the Renovabio program, thereby limiting access to the carbon credit market inside Brazil."

Read more on DTN:

"Trump Administration Launches Trade Investigation of Brazil Including Ethanol Tariff Against US Producers," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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