Posted on May, 12, 2025 at 07:20 pm
A new trade deal between the United States and the United Kingdom is expected to boost market access for US agricultural producers, with grain groups particularly lauding more opportunities for US ethanol exports.
Announced May 8 by the administration of US President Donald Trump, the trade deal was touted as creating up to $5 billion in new export opportunities for US farmers, ranchers and producers. The deal specifically will include more than $700 million in US ethanol exports, via a new tariff-free quota for ethanol, applying to the first 1.4 billion liters (368 million gallons).
“This deal is a huge win specifically for US ethanol producers, allowing them to expand even more into our second largest market for ethanol,” said Ryan LeGrand, president and chief executive officer of the US Grains Council. “It’s a crucial step forward in the continued positive relationship between our two countries, and we greatly appreciate all the Trump administration has done to expand reach for US ethanol.”
The United Kingdom imported 857.8 million liters (226.6 million gallons) of US ethanol in the 2023-2024 marketing year, making it the second largest importer of US ethanol, for a total of just over $529 million, according the USGC.
Calling the deal ”a significant achievement for American agriculture and a critical step in strengthening transatlantic market access,” the National Grain and Feed Association (NGFA) said it looks forward to working with both governments to ensure smooth implementation and continued progress toward a more open trading relationship.
“We thank the Trump administration for its effort to negotiate increased market access to the United Kingdom for US agricultural products, including new opportunities for ethanol exports,” said Mike Seyfert, president and CEO of the NGFA. “We look forward to continued efforts by the administration to negotiate additional deals with trading partners that improve market access for NGFA members and US agriculture. These deals should reduce both tariff and non-tariff barriers to trade while upholding the gold standard science and approval processes that have made the US a leader in food quality and safety for decades.”
The National Corn Growers Association (NCGA) praised a new bilateral trade agreement, noting that ethanol exports to the UK have steadily increased since 2021 and are now 12.7% of total US shipments.
“This is great news,” said Kenneth Hartman Jr., president of the NCGA and an Illinois farmer. “We applaud President Trump and his administration for brokering this deal, and we encourage them to continue to include corn, corn ethanol and corn co-products in future bilateral agreements with other countries.”
The Renewable Fuels Association (RFA) thanked the Trump administration for its focus on ethanol during negotiations with the United Kingdom.
“While we are still awaiting the specific details of the agreement, we are excited about the prospects of expanded market access that will help boost our farm economy, while also delivering lower-cost, cleaner fuel to UK drivers,” the RFA said.
Source: World Grain