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RENEWABLE FUELS ASSN SEEKS AGRICULTURE EXEMPTION IN PROPOSED SHIPPING RESTRICTIONS
Mar. 26, 2025
Source: Renewable Fuels Association news release
Washington -- In a letter sent late Monday to the U.S. Trade Representative, RFA joined dozens of other associations in seeking an exemption for agricultural exports from both newly proposed fees on Chinese vessels and graduated sourcing requirements for U.S. built and flagged vessels "until such time as our nation's ship production can meet the requirements needed to keep U.S. agriculture competitive in the global market."
The letter noted that, last year, the U.S. exported $191 billion in U.S. agricultural and related products. More than 70 percent of the ag exports were waterborne and moved by vessels through 29 customs districts and numerous ports. Ag industry experts and market analysts share that U.S. built bulk vessels for agricultural exports currently make up 0.2 percent of the current global fleet, with more than half of that fleet being Chinese-built vessels.
"In 2024, the American ethanol industry enjoyed record exports of renewable fuel and animal feed to countries around the world," said RFA President and CEO Geoff Cooper. "Efficient, reliable, and timely export transportation service is critical to the viability of our industry, and the imposition of these fees would be devastating to our marketplace. We urge the U.S. Trade Representative to recognize the vital importance of American agriculture products to the world economy, and grant the requested exemptions."
"While we support President Trump's effort to rebuild the United States position and power in global shipping, we are worried the current fees and timelines cannot be achieved without substantial economic harm on the farm and in rural America," the letter stated. "These are not idle concerns. U.S. commodity prices and agriculture exports have already been negatively impacted due to uncertainty regarding when trade actions would become effective. Vessel operators have told U.S. exporters they intend to pass on 100 percent of the cost of the port fees."
The letter concluded: "Our organizations would like to work with USTR and the Trump Administration on their development of trade actions to revitalize the U.S. maritime industry without harming export dependent industries such as U.S. agriculture. We respectfully request consideration of our recommended exemption for agricultural exports and imports of key inputs until such time as the requirements of this proposal for U.S. sourced vessels can be met."
Click Here for RFA's 2024 trade statistics for ethanol, and Click Here for our report on distillers grain exports.
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