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A thorough investigation into China’s prejudicial trade actions with American agriculture is “justified and necessary,” the Renewable Fuels Association said today at a hearing of the U.S. Trade Representative in Washington.
“China’s failure to fully implement the Phase One Agreement has resulted in lost market opportunities and significant financial losses for U.S. ethanol producers and the farmers who supply grain to our member companies,” RFA President and CEO Geoff Cooper testified.
Click here for the RFA testimony as prepared.
China was once the top export market for U.S. dried distillers grains and one of the largest export markets for U.S. ethanol, Cooper said, and this changed after the 2019 agreement.
“China reneged on its commitment to meaningfully increase purchases of ethanol and distillers grains in 2020 and 2021 and entirely failed to address the structural barriers that hindered our industry’s long-term access to the market,” Cooper said. “Instead, China erected new barriers that were even more punitive to U.S. ethanol and distillers grains, completely shutting American-made ethanol out of the market over the past four years.”
Cooper concluded: “We are confident the Section 301 investigation will provide indisputable evidence that China’s unfair policies have severely injured U.S. ethanol producers and farmers. Thus, we support USTR and the Trump Administration taking action to ensure U.S. producers are protected against the deleterious effects of China’s failed trade policies.”