U.S. and Brazil in ethanol showdown

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U.S. and Brazil in ethanol showdown

A bipartisan coalition of House members is urging the Trump Administration to hold firm in its efforts to restore fair and equitable ethanol trade with Brazil.

U.S. chief ag negotiator Gregg Doud says they intend to do just that.

“Brazil has access to the U.S. market for ethanol at a 1.9 percent tariff. We have access into Brazil, but they’re wanting to jack up the tariff on us to 20 percent. And the president has said, and I have said, ‘NO’. If we’re going to trade, the tariff has got to be the same going in both directions,” says Doud.

President Trump has hinted at a possible retaliation if Brazil decides to reinstate tariffs on ethanol trade. 

The issue will likely come to a head in the next few days. Brazil’s current tariff rate quota is set to expire at the end of August.

Doud commented last Friday during a webinar hosted by Nebraska Congressman Adrian Smith.

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