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Agricultural News


Renewable Fuels Association Asks Administration for Help in Trade Dispute

Tue, 20 Nov 2012 18:35:51 CST

Renewable Fuels Association Asks Administration for Help in Trade Dispute
The Renewable Fuels Association is asking the Obama administration to get involved in a trade dispute with Brazil.


Bob Dinneen, president of RFA, sent a letter to US Trade Ambassador Ron Kirk. He asked for the administration's help in persuading the Brazilians to curtail certain trade distorting policies that have contributed to the dramatic decline in U.S. exports of ethanol to Brazil.


The letter seeks assistance from the USTR in convincing Brazil to reverse its decision to reduce blend volumes from 25% to 18%, and remove a tariff imposed by the state of Sao Paulo that is discriminating against a vast majority of exports to Brazil. While imports of ethanol from Brazil continue to flow into the U.S. at the rate of about 50 - 60 million gallons per month with the help of the RFS, exports to Brazil have reduced significantly as a result of these trade barriers.


Most analysts expect the U.S. to export just 650-750 million gallons for the entire year, with only about 10-15% going to Brazil. This letter seeks action from the U.S. in convincing Brazil to remove these artificial barriers to U.S. exports.



You can read Bob Dinneen's letter by clicking here.




      


 

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