U.S. Trade Representative Katherine C. Tai confirmed her office is working to get Brazil to end its import tariff on U.S. ethanol imports during a hearing held by the U.S. Senate Finance Committee on March 23 focused on President Biden’s 2023 trade policy agenda.

The government of Brazil on Feb. 1 announced the reinstatement of its tariff on fuel ethanol imports. The import tax is set at 16 percent through the end of 2023, increasing to 18 percent next year.

Brazil in March 2022 waived its import tariff on several products, including fuel ethanol, through the end of the calendar year in an effort to alleviate inflationary pressures resulting from the COVID-19 pandemic and market impacts caused by Russia’s invasion of Ukraine.

In December 2022, Brazil extended the suspension of the import tariff on ethanol through the end of January 2023. That exemption, however, was lifted on Feb. 1.

During the March 23 hearing, Sen. Chuck Grassley, R-Iowa, stressed that Brazil’s ethanol tariff is unfair and unjustified, noting that Brazilian ethanol has duty-free access to the U.S. market. He asked Tai if she can work with him to end the unjustified increase in U.S. ethanol tariffs.

Tia confirmed she raised the issue of ethanol tariffs with Brazilian officials during a trip she took to the country earlier this month. She also confirmed that USTR Chief Agricultural Negotiator Doug McKalip is following up on the issue.

A full replay of the hearing is available on the Senate Finance Committee website.