USTR: Japan’s new policy increases market for US ethanol exports
Summary
By Office of U.S. Trade Representative | April 05, 2023 Following extensive engagement by the Office of the United States Trade Representative, the U.S. Department of Agriculture, and U.S. Embassy Tokyo, Japan published a new biofuels policy on March 31 that will allow the United States to capture up to 100 percent of Japan’s on-road ethanol market. The Biden Administration commends the government of Japan for taking another step to strengthen the bilateral trade relationship. “Ambassador Emanuel and the staff across the U.S. government deserve huge credit for working through the technical details that led to this outcome, which is just the latest sign of a strengthened partnership between our two countries.” According to the new biofuels policy under the Sophisticated Methods of Energy Supply Structure Act, exports of U.S. ethanol could increase by over 80 million gallons annually, representing an additional $150-200 million in exports each year. We will continue working with Japan to increase its on-road ethanol demand and further align its biofuels policies with that of the United States. This new policy is also a big win for American farmers and our rural economy, as it will expand U.S. biofuel producers’ access to the Japanese market,” said Agriculture Secretary Vilsack.