Ethanol Blog

LINCOLN, Neb. (DTN) -- The Renewable Fuels Association on Monday called on the Trump administration to implement reciprocal duties on the import of Chinese agriculture products into the U.S., telling the U.S. Trade Representative in comments that China failed to satisfy commitments made in the 2019 trade agreement to increase trade into China for U.S. ethanol and distillers grains.

"On behalf of RFA's membership, and the U.S. ethanol industry as a whole, we are extremely grateful to President Trump and his administration for its steadfast commitment to fair and reciprocal trade with China," RFA President and CEO Geoff Cooper said in comments to the USTR.

"We applaud USTR for taking a closer look at China's failure to deliver on its Phase One commitments, which has resulted in a lost market opportunity for U.S. ethanol producers and farmers and caused significant financial losses."

The RFA said on Monday that China purchased just 58% of the total U.S. goods and services exports in 2020 and 2021 that it had agreed to in the 2019 agreement.

"In fact, China ultimately failed to buy any of the additional $200 billion in goods in 2020-2021, instead falling $11.6 billion short of even reaching the baseline level of purchases," the RFA said in a news release on Monday.

On ethanol, after the signing of the Phase One agreement in 2020, China purchased just 31.7 million gallons of ethanol from the U.S. valued at just under $51 million, according to the RFA.

In 2021, China purchased just over 100 million gallons of ethanol from the U.S. valued at $162 million. Since 2021, the RFA said U.S. ethanol imports by China have fallen to near zero and "flatlined." A similar trade pattern was seen on distillers grains, the RFA said.

"Today, as our nation's farmers and rural communities face serious economic challenges, it is critical that our trading partners live up to their commitments and be held accountable for failing to comply with key terms and provisions negotiated in the process," Cooper said.

"Moreover, trading partners must act in good faith as we work to negotiate longer-lasting, more resilient trade agreements. It is critical that China work to restore its commitment to agriculture purchases under the phase one agreement or otherwise face reciprocal action for its failure and/or refusal to do so."

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

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