The National Corn Growers Association voiced support this week for proposed 25% tariffs on Brazilian ethanol imports, telling the Office of the U.S. Trade Representative that the investigation should also examine a broader range of Brazilian policies that the group says have disadvantaged U.S. corn growers and ethanol producers.

Matt Frostic, a Michigan farmer and NCGA leader, delivered the comments during a USTR hearing Monday. The hearing follows Brazil's imposition of an 18% tariff on U.S. ethanol, along with other domestic and international actions that NCGA says have placed U.S. ethanol at a competitive disadvantage.

Frostic said Brazil was once the leading export market for U.S. ethanol, but exports fell sharply after the tariff was reinstated in 2018. He argued that the decline in market access demonstrates the impact of Brazil's trade policy on U.S. ethanol exports.

He also said Brazilian sugarcane ethanol imports into the United States increased while Brazil maintained restrictions on U.S. ethanol.

In addition to supporting the proposed tariffs, Frostic urged USTR to examine Brazil's refusal to allow U.S. ethanol producers to participate in its domestic biofuels program. He said the policy discriminates against U.S. producers because Brazilian companies are permitted to participate in the U.S. Renewable Fuel Standard.

Frostic also challenged Brazil's claims regarding the environmental profile of its ethanol industry. He said Brazil's characterization of its corn as a secondary crop gives its ethanol an artificial carbon intensity advantage over U.S. producers. 

“Brazil claims that its corn is a secondary crop, such that inputs and land used are more minor compared to the United States,” he said. “But this could not be more incorrect, as land conversion from grassland or rainforest in Brazil is not properly documented.”

Frostic concluded by saying additional action is needed to restore U.S. ethanol market access in Brazil and create a more level international playing field for American corn growers.

The full testimony can be read here.

Source: National Corn Growers Association, "NCGA Leader Calls Out Brazil on Trading Practices "