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Brazil Ethanol Tariffs: U.S. Corn Growers Demand Action

by Lucas Fernandez – World Editor

corn grower Leader Urges Action Following U.S. Trade investigation into‌ Brazil

A ⁤leading voice ​for American corn farmers expressed strong⁤ support for a U.S.​ Trade Representative (USTR) ⁢investigation into ‍Brazil’s trade practices, citing unfair penalties impacting U.S. exports. Kenneth Hartman ⁤Jr., President‌ of the National Corn Growers Association (NCGA)⁤ adn an Illinois farmer, testified before ⁤a USTR panel, detailing concerns over Brazilian⁤ trade actions.Hartman ⁤stated ⁣that Brazil has implemented policies ⁢over the last decade specifically designed to diminish⁤ demand for U.S. corn and ethanol. ⁢He highlighted the imposition of tariffs on ‍U.S. ethanol, ⁣beginning with a 20% tariff​ in 2017, which was briefly ⁤suspended before ⁣being reinstated at 16% and ‍subsequently raised to 18% in early 2024.

“Brazil was previously the ⁣leading export market for U.S. ​ethanol,” Hartman explained, “but the reimposition of these ⁤tariffs caused ⁢a significant and rapid decline in sales.” He further noted the‌ simultaneous increase⁣ in imports of Brazilian sugarcane ethanol into the United States.

The‌ USTR investigation was initiated under Section 301 ‍of the 1974 Trade Act, allowing for a ​review of potential ​unfair trade practices.Hartman urged the USTR to consider reciprocal trade measures if negotiations ⁤with Brazil fail to result in the‍ removal of the ethanol tariffs.

The NCGA has actively advocated on this issue and ​hartman affirmed the organization’s commitment ⁤to​ working⁤ with the USTR to ⁢address⁣ the economic ⁤harm caused ⁤by Brazil’s policies and secure a fair trading⁢ surroundings for U.S. corn growers. He emphasized that the NCGA has compiled extensive evidence to ‌support its claims and ⁣is prepared to collaborate with the management⁤ to find a resolution.

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