Growth Energy Urges Swift Action on China’s Unfulfilled Agricultural Trade Commitments

WASHINGTON, D.C.—As the Office of the U.S. Trade Representative (USTR) heard testimony today on its Section 301 investigation into China’s implementation of the Phase One trade agreement, Growth Energy’s written comments highlighted significant shortfalls in Chinese purchases of U.S. ethanol and other agricultural commodities, and urged the administration to ensure Beijing is held to its commitments to American farmers and biofuel producers.

“The Trump Administration is right to closely scrutinize China’s failure to meet its agricultural purchase commitments,” said Growth Energy CEO Emily Skor. “America’s ethanol producers and corn growers stood ready to deliver on the market access promised under Phase One. When China committed to substantial agricultural purchases, our industry invested and prepared accordingly. We appreciate USTR’s leadership in examining these shortfalls and look forward to working with the administration to ensure American ethanol producers receive the fair treatment and market access they deserve.”

In comments submitted to USTR’s Section 301 investigation, Growth Energy detailed major gaps between China’s commitments and actual purchases:

Overall Agricultural Shortfalls:

• China’s agricultural purchases reached only 82 percent of committed levels in 2020 and 84 percent in 2021.
• Total agricultural gap: $12 billion below Phase One commitments.
• The additional $5 billion per year China agreed to “strive for” never materialized.

Ethanol-Specific Deficits:

• China was the third largest export market for U.S. ethanol in 2016
• U.S. ethanol exports to China fell 39 percent below the 2017 baseline in 2020, despite China committing to a 64 percent increase in overall agricultural purchases.
• Estimated cumulative ethanol purchase deficit: $88.6 million during the Phase One implementation period.
• Since 2021, ethanol exports to China have essentially disappeared.

Signed in January 2020, the Phase One agreement committed China to $32 billion in additional agricultural purchases over two years above 2017 levels. Although the agreement did not specify commodity-specific targets, ethanol was explicitly included as an eligible agricultural product.

Growth Energy represents 97 U.S. ethanol plants producing 9.5 billion gallons annually, along with 130 associated businesses. Its members are among the nation’s leading exporters, supporting nearly two billion gallons of ethanol exports to more than 60 countries worldwide.

Growth Energy’s complete comments to USTR are available here.