Grassley Urges U.S. Leadership on Trade, Advocates for American Ethanol amid Brazilian Market Barriers

Grassley Urges U.S. Leadership on Trade, Advocates for American Ethanol amid Brazilian Market Barriers

WASHINGTON - Sen. Chuck Grassley (R-Iowa) at today's Senate Finance Committee hearing advocated for Iowa agriculture, grilling U.S. Trade Representative (USTR) Ambassador Katherine Tai on the Biden administration's "abdication of leadership on trade" and urging her to go to bat for American ethanol in Brazil.

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Iowa is a U.S. agriculture powerhouse. The state is number one in corn, pork and egg production and second in soybean production. Iowa exported over $16.5 billion in agriculture products in 2022. That's why Grassley is a force behind policies to reduce trade barriers for U.S. products overseas. Under the Biden administration's watch, U.S. ag exports decreased by over $17 billion in 2023; this year's ag trade deficit is projected to be $30.5 billion.

Excerpts from Grassley's exchange with Ambassador Tai follow.

Boosting U.S. Competitiveness on Digital Trade

"There's been a bipartisan agreement on this committee on critical issues such as free cross-border data flow, data localization, open markets and intellectual property protection. […] Our competitors repeatedly seek to discriminate against U.S. companies and impede access to their markets. Yet, the Biden administration has pulled back from negotiations on digital service trades and rejected long-term, long-held, bipartisan principles against discriminatory practices of our partners.

"Why is USTR allowing other countries to set the rules that will put American companies at a disadvantage? This can't be consistent with USTR's mission."

Tai affirmed Grassley's assertion the Biden administration's USTR has "pulled back" on digital trade, though she failed to provide substantive reasons for doing so. She highlighted Grassley's work to rein in Big Tech through his American Innovation and Choice Online Act and the Kids Online Safety Act.

Restoring Brazilian Market Access for American Ethanol

"The last time you appeared before this committee I urged you to negotiate lower tariffs on ethanol with Brazil. While I understand you are currently negotiating this matter, the results have been lackluster. Brazil increased its duties on ethanol this year from 16 to 18 percent and continues to enjoy importing its ethanol tariff-free. This ethanol competes with home grown ethanol in California's low-carbon fuel standard, but also in sustainable aviation fuel.

"What is the administration doing to press Brazil to lower its tariffs? What concrete measures [is] the administration considering in the negotiation?"

"[USTR is in coordination with USDA…], actively engaging with our counterparts in Brazil on market access barriers to U.S. ethanol, including those tariffs and regulatory barriers you're talking about," Tai confirmed. "Our objective is to ensure U.S. ethanol can, once again, compete on a level playing field with domestically produced ethanol in Brazil. […] The strength of your voice on this matter is an asset to us."

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