The Renewable Fuels Association, Growth Energy and the U.S. Grains Council want the U.S. Trade Representative to suspend Brazil’s designated country status under the Generalized System of Preference. RFA President and CEO Bob Dinneen says they’ve written to Trade Ambassador Robert Lighthizer saying the suspension is needed because of Brazil’s protectionist and market distorting actions, especially regarding ethanol imports.
He says the action is needed against Brazil because of their implementation of a Tariff Rate Quota or TRQ that affects all ethanol imports.
Dinneen says the TRQ instituted by Brazil has resulted in a $2.76 billion trade deficit. He says that means Brazil shouldn’t have the preferential market treatment under GSP.
Dinneen says Brazil’s TRQ allows only 150 million gallons of ethanol to be imported where in the past the U.S. has shipped close to 500 million gallons. Any amount over the 150 million gallons receives a 20-percent tariff.
