Growth Energy backs US penalties against Brazil for unfair trade practices

Growth Energy testified in favour of proposed penalties for Brazil’s unfair restrictions on imports of US ethanol.

The US Trade Representative (USTR) is hosting a hearing on the issue following a year-long investigation into Brazil’s trade practices. Growth Energy also filed written comments earlier this month, welcoming USTR’s proposal to impose tariffs of 25 percent on all goods from Brazil and calling for additional actions to repair the harm Brazil has caused farmers and ethanol producers.

“Brazil has been systematically working to undermine the US bioeconomy since 2017, all while enjoying complete and unfettered access to American markets,” explained Growth Energy’s Chris Bliley, senior vice-president of regulatory affairs in written testimony.

“We support the administration’s efforts to restore balance to our trade relationship with Brazil. To that end, we’re encouraging USTR to go beyond the proposed tariff, and take additional actions to end deceptive practices designed to disguise illegal deforestation by Brazilian producers and block US products from participating in clean fuel markets.”

Among other remedies, Growth Energy is calling on USTR to work with the US Environmental Protection Agency (EPA) to remove Brazilian ethanol’s ability to generate credits under the U.S. Renewable Fuel Standard (RFS).

Currently, RenovaBio, Brazil’s renewable fuel programme, effectively blocks US biofuels, even as Brazilian ethanol receives favourable treatment under the US programme.