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Friday, May 3, 2024

LaHood, Feenstra Lead Efforts to Expand Biofuels Markets and Address Brazil's Ethanol Tariff

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Congressman Darin LaHood | Congressman Darin LaHood Official Website

Congressman Darin LaHood | Congressman Darin LaHood Official Website

Washington, D.C. – Yesterday, U.S. Reps. Darin LaHood (R-IL) and Randy Feenstra (R-IA) spearheaded efforts to push the Biden Administration towards action in developing new markets for biofuels exports and addressing Brazil's tariff on American ethanol.

Representative LaHood emphasized the importance of fair market access for American ethanol, stating, "Illinois is a leader in corn and biofuels production – and we must ensure free and fair market access to American ethanol." His counterpart, Representative Feenstra, highlighted Iowa's significant role in biofuels production, stating, "Our thriving biofuels industry powers our economy, supports our farmers, generates economic activity in our rural communities, and supports American energy independence."

Expressing concern over the impact of Brazil's ethanol tariffs, LaHood reiterated the need for action, saying, "Eliminating these discriminatory trade barriers must be a priority for the Biden Administration." Feenstra echoed this sentiment, noting, "With a $30-billion agricultural trade deficit projected for this fiscal year and farm income forecast to plummet by $40 billion, we must negotiate trade agreements that benefit American agriculture and advocate for our producers in global markets."

In a letter addressed to President Biden and U.S. Trade Representative Katherine Tai, the lawmakers highlighted the disparity in tariffs between the U.S. and Brazil, urging for the repeal of Brazil's 18% tariff on American ethanol. They also called for the development of new markets for American biofuels exports to support the growth of the industry.

The lawmakers emphasized the importance of supporting American biofuel producers during global trade discussions, especially with the anticipated growth of the Sustainable Aviation Fuel (SAF) market. They urged the Biden administration to negotiate free trade agreements that benefit American workers, farmers, and businesses, or alternatively, pursue strategies to reduce trade barriers.

The full letters addressed to President Biden, U.S. Trade Representative Katherine Tai, and U.S. Secretary of Agriculture Tom Vilsack can be accessed for further details and insights.

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