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ACE Statement on Brazil’s Extension of TRQ on US Ethanol

Sioux Falls, SD (September 14, 2020) – The U.S. and Brazil announced late Friday they’re reinstating for 90 days starting today, September 14, the tariff rate quota (TRQ) on Brazilian imports of U.S. ethanol, which expired August 31 and allowed nearly 200 million gallons of U.S. ethanol to be imported tariff free. American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following reaction:

“While an extension is better than the flat 20 percent tariff on all U.S. exports, this merely kicks the can down the road past the election and can be added to the list of piling uncertainties facing our industry. We have been trying to restore demand at home and around the world and in a year like 2020, finding growth opportunities are of the utmost importance.

“Prior to the imposition of the TRQ, Brazil was the largest export destination for U.S. ethanol producers. Our countries maintained a reciprocal policy of applying minimum or zero duties on ethanol imports for nearly a decade and we hope Brazil will put an end to its protectionist trade policies toward our U.S. ethanol industry. The TRQ unnecessarily limits our export potential and we hope further negotiations will ultimately make it easier for producers to pursue free and fair trade for ethanol in the future.”


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