Washington DC: A new trade agreement between the United States and the United Kingdom is expected to significantly increase market access for American agricultural producers, particularly ethanol exporters. The deal, announced on May 8 by the administration of President Donald Trump, is projected to create up to $5 billion in new export opportunities for U.S. farmers, ranchers, and food producers, reports World.Grain.com.
Among the key highlights of the agreement is a new tariff-free quota for ethanol, covering the first 1.4 billion liters (approximately 368 million gallons) exported to the UK. This provision alone accounts for more than $700 million in potential ethanol exports.
“This deal is a huge win for U.S. ethanol producers,” said Ryan LeGrand, president and CEO of the U.S. Grains Council. “It gives us even more access to what is already our second largest market for ethanol. This is a big step forward in strengthening our trade ties with the UK.”
In the 2023–2024 marketing year, the United Kingdom imported over 857 million liters (226.6 million gallons) of American ethanol, worth roughly $529 million, according to the U.S. Grains Council.
The National Grain and Feed Association (NGFA) also welcomed the agreement, calling it a “critical step” toward improving transatlantic trade relations. “We appreciate the administration’s work to open new markets for U.S. agriculture,” said NGFA President and CEO Mike Seyfert. “This deal helps lower trade barriers while maintaining the high standards of food safety and quality that the U.S. is known for.”
The National Corn Growers Association (NCGA) echoed that sentiment, noting that exports of ethanol to the UK have been rising since 2021 and now represent nearly 13% of total U.S. ethanol shipments.
“This is great news for American corn growers,” said Kenneth Hartman Jr., NCGA President and an Illinois farmer. “We thank the administration for making this happen and encourage continued efforts to include corn and related products in future trade agreements.”
The Renewable Fuels Association (RFA) also expressed optimism, praising the focus on ethanol in the negotiations. “While we await full details of the agreement, we’re encouraged by the expanded market access this provides,” the RFA stated. “It will not only support American farmers and producers but also offer UK consumers more affordable, environmentally friendly fuel options.”
Agricultural groups are hopeful the agreement sets the tone for more such deals aimed at reducing trade barriers and promoting U.S. farm exports.
