US confronts Brazil over ethanol tariff

Source: By Bill Tomson, Agri-Pulse • Posted: Wednesday, March 29, 2023


The U.S. Trade Representative’s chief agriculture negotiator, Doug McKalip, is preparing to head to Brazil as the Biden administration tries to get the South American nation to end its tariff on U.S. ethanol.

USTR Katherine Tai told the Senate Finance Committee last week she put McKalip in charge of working with Brazil on the issue and that she confronted the administration of newly elected Brazilian President Luiz Inácio Lula da Silva about the country’s ethanol tariff when she was in the capital city of Brasilia earlier this month…The return of the 20% tariff on U.S. ethanol cut U.S. ethanol exports to Brazil to just a small fraction of what they once were, said Renewable Fuels Association Chief Economist Scott Richman. “That really adversely affected U.S. shipments from then onward,” he said. U.S. ethanol exports to Brazil dropped to just 71 million gallons in 2021 and