Joint Statement on U.S.-Brazil Trade in Ethanol


Washington, DC – Brazil and the United States have held consultations regarding their bilateral trade on ethanol. As a result, they have decided to conduct results-oriented discussions on an arrangement to improve market access for ethanol and sugar in Brazil and the United States. They will also consider an increase in market access for corn in both countries. The two countries will also discuss ways to ensure there is fair market access along with any increase in the consumption of ethanol, as well as to coordinate and ensure that the ethanol industries in both countries will be treated fairly and benefit from future regulatory changes on biofuel products in Brazil and the United States. The discussions should aim to achieve reciprocal and proportional outcomes that generate trade and open markets to the benefit of both countries.

Such discussions will take place over a 90-day period starting on September 14, 2020. During such time, Brazil will maintain a pro-rata tariff-rate quota (TRQ) for ethanol proportional to the total annual volume of the TRQ that was in force on August 30, 2020.
Brazil and the United States agreed to proceed in this manner in the spirit of the economic partnership created under the leadership of Presidents Trump and Bolsonaro, acknowledging the need to continue to constructively address the effects of the crises generated by the COVID-19 pandemic on their bilateral trade and domestic production.