National Corn Growers Association Supports Congressional Letter Seeking to Open International Markets for Biofuels, Address Trade Barriers in Brazil

March 19, 2024

National Corn Growers Association Supports Congressional Letter Seeking to Open International Markets for Biofuels, Address Trade Barriers in Brazil

Mar 19, 2024

Key Issues:Trade

Author: Bryan Goodman

The National Corn Growers Association said today that it strongly supports the sentiments included in a letter from Reps. Randy Feenstra (R-Iowa), Darin LaHood (R-Ill.) and 18 other members of Congress that was recently sent to President Biden and the U.S. Trade Representative. The letter urges action to remove trade barriers affecting ethanol and other biofuels, and open new export markets that would benefit farmers.
 

“Opening new markets and reducing barriers to existing markets for biofuels is crucial to growing demand for corn growers,” said Minnesota farmer and NCGA President Harold Wolle. “We are highly appreciative of Reps. Feenstra and LaHood for standing up for farmers, and we hope it will provide a roadmap for USTR as it works to address some high stakes trade issues like the current ethanol tariff in Brazil.”

In the letter, the members of Congress highlighted the economic benefits of free markets.

“The United States exports approximately 1.5 billion gallons of ethanol annually, utilizing 500 million bushels of corn that is predominantly supplied by American farmers,” the letter said. “The production and exportation of these biofuels provide an enormous boost to the rural communities that we represent. We urge you to actively support expanding market access for U.S. biofuels.”

The letter referenced several countries that have created roadblocks for U.S. exports, including Brazil, which has levied an 18% tariff on ethanol imported from the U.S. and India’s ban on the imports of fuel-grade ethanol.

“In the absence of enforceable [free trade agreements], we urge you to pursue an aggressive strategy to increase opportunities for market access through the reduction of trade barriers,” the letter said. “Specifically, some trading partners have implemented policies to restrict American biofuel imports, and we urge your continued attention to these matters.”
 

NCGA and corn grower leaders have been on the forefront of these issues, championing new market development through the farm bill and encouraging USTR to address trade barriers. In 2023, for example, NCGA successfully pushed for USTR to file a dispute settlement under the U.S.-Mexico-Canada Agreement over Mexico’s decree banning biotech corn. 


READ THE LETTER