When Trade Representative Jamieson Greer announced a Section 301 investigation of Brazil’s trade practices, he cited “ethanol market access … and illegal deforestation among the practices that place an “unreasonable or discriminatory and burden or restrict U.S. commerce.”

Section 301 of the Trade Act of 1974, as amended, is designed to address unfair foreign practices affecting U.S. commerce. Section 301 may be used to respond to unjustifiable, unreasonable, or discriminatory foreign government practices that burden or restrict U.S. commerce.

Growth Energy CEO Emily Skor said in a news release, “Today’s action by USTR is a sign that the old days of Brazil enjoying unfettered access to the U.S. ethanol market while unfairly putting a tariff on American ethanol imports could soon come to an end. On behalf of U.S. ethanol producers across the heartland, we say it’s about time. We applaud USTR for taking this concrete step to dig further into Brazil’s unfair treatment of American ethanol and hope that it ultimately leads to a more level playing field for U.S. farmers and biofuel producers.” 

Renewable Fuels Association President and CEO Geoff Cooper said, “We applaud the Trump administration for this important action. For almost a decade now, we have spent precious time and resources fighting back against an unfair and unjustified tariff regime imposed by Brazil’s government on U.S. ethanol imports. What’s more ironic is that these tariff barriers have been erected against U.S. ethanol imports while our country has openly accepted — and even encouraged and incentivized —ethanol imports from Brazil.” 

U.S. Grains Council President and CEO Ryan LeGrand said, “The council is encouraged by the news of the investigation into Brazil that has — for years — placed unfair tariffs on American ethanol imports.”

CNN noted that President Trump launched the Section 301 investigation after threatening to impose a 50% tariff on Brazilian products over issues including the criminal case against its former President Jair Bolsonaro. The United States enjoys a trade surplus with Brazil.