The president of the National Corn Growers Association (NCGA) submitted comments today on the U.S. Section 301 investigation into Brazil’s unfair trading practices, specifically on ethanol.
In his comments, Illinois farmer and NCGA President Kenneth Hartman Jr. outlines clear evidence demonstrating that Brazil’s ethanol tariff and other actions are unreasonable, discriminatory and burden U.S. commerce.
“Brazil has enjoyed preferential market conditions while simultaneously erecting barriers that restrict and prevent access for American corn ethanol exporters,” Hartman said. “Brazil was once a top market for American ethanol exports, but their 18 percent tariff has eradicated this market.”
Section 301 investigation allows USTR to determine if a foreign country has taken unfair trade actions that burden or restrict U.S. commerce. Hartman has requested to testify at the Section 301 hearing in early September.
“Brazil is actively looking to unseat the historic and obvious success of the American corn industry by a series of trade actions that directly and indirectly harm U.S. corn growers,” Hartman said.
For many years, Brazil has taken measures – both direct and indirect – to siphon market share for American ethanol exports and prevent U.S. access to the global synthetic aviation jet fuel market, which presents an enormous opportunity in the coming decade. Soon after Brazil imposed the ethanol tariff, U.S. ethanol exports to Brazil experienced a 93% decrease, dropping from $761 million in 2018 to only $53 million in 2024.
If the Section 301 investigation determines that a country’s actions are unreasonable or discriminatory, tariffs or other retaliatory measures can be applied.