Amid Trump Tariffs, USTR highlights need to secure market access for US fuel ethanol in India, Thailand

Times of Oman

08-04-2025

Washington DC: With tariffs imposed by US President Donald Trump beginning to kick in, the United States Trade Representative (USTR) has spotlighted 10 trade practices faced by American exporters they deemed "unfair", including India's ban on US ethanol imports.
The USTR listed 10 "unfair trade practices" by trading partners faced by American exporters.
In a post on X, the USTR said, "India bans imports of US ethanol for fuel use. Similarly, Thailand restricts imports of fuel ethanol, requiring approval and issuance permits, and hasn't approved an import permit for fuel ethanol since 2005. Securing market access to India and Thailand for exports of US fuel ethanol would result in at least an additional USD 414 million in annual export value."
According to the USTR's 2025 National Trade Estimate Report, "Despite ambitious targets for blending ethanol with gasoline, India prohibits the import of ethanol for fuel use.
The Ministry of Commerce and Industry (MOCI) also requires an import license from the Directorate General of Foreign Trade (DGFT) to import ethanol for non-fuel purposes. In addition, the DGFT restricts biofuel imports under HS subheadings 2207.20 and HS 2710.20 and HS heading 3826 for non-fuel use to actual users. Since May 2019, the Commerce Ministry has required an import license for biofuels under these HS headings and subheadings."
On March 20, Minister of State for Petroleum Suresh Gopi said in a written reply to the Lok Sabha that the Union government is planning to increase the blending of 20 per cent ethanol in petrol from 2030.
The National Policy on Biofuels - 2018, as amended in 2022, inter alia advanced the target of 20 per cent ethanol blending in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030.
Public Sector Oil Marketing Companies (OMCs) achieved the target of 10 per cent ethanol blending in petrol in June 2022, i.e. five months ahead of the target during ESY 2021-22. The blending of ethanol further increased to 12.06 per cent in ESY 2022-23, 14.60 per cent in ESY 2023-24 and 17.98 per cent in ESY 2024-25 upto 28th February 2025.
So far, the government has not decided to increase ethanol blending beyond 20 per cent, according to a release by the Ministry of Petroleum & Natural Gas that quotes the MoS.
According to the Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-ministerial committee, using 20 per cent ethanol-blended petrol (E20) results in a marginal reduction in fuel efficiency for four-wheelers designed for E10 and calibrated for E20.
The Society of Indian Automobile Manufacturers (SIAM) informed the committee that engine hardware and tuning modifications can reduce the efficiency loss due to blended fuel. As per the MoS reply, the committee report has also highlighted that no major issues were observed in vehicle performance, wear of engine components, or engine oil deterioration with E20 fuel.
In its posts, the USTR also flagged issues with China, Japan, the EU and other nations. The USTR said, "Over 100,000 Chinese-made American flags are sold every month on just one e-commerce platform alone, resulting in USD 2 million in lost sales for American manufacturers, which ultimately leads to lost job opportunities and business closures. American flags should be Made in America."
"Japan maintains tariffs of up to 10.5 per cent on U.S. seafood exports and also subjects several types of fish to a complex import quota system, which makes it difficult for US exporters to enter the market reliably. These unfair trade practices cost the US seafood industry an estimated $189 million annually in lost export potential, hurting American fishers and coastal communities that depend on global market access to sustain their livelihoods," the USTR said.
USTR also highlights the European Union's Carbon Border Adjustment Mechanism: "The EU's Carbon Border Adjustment Mechanism (CBAM) imposes costly verification measures and could reduce U.S. exporters' advantage in the EU market over high-emissions competitors, namely China. These EU regulations undermine fair competition, penalizing US companies while providing advantages to EU-based competitors. It is estimated the EU CBAM will impact USD 4.7 billion worth of annual US exports."
The USTR's 2025 National Trade Estimate Report says that trade barriers or other trade-distorting practices affect US exports to foreign markets. They effectively impose costs on US exports that are not imposed on goods produced in the importing market. These unfair trade practices undermine US exporters' competitiveness and, in some cases, prevent US goods from entering the foreign market entirely.
Meanwhile, on Monday, US Secretary of State Marco Rubio and External Affairs Minister S Jaishankar held a discussion on US tariffs on India following President Donald Trump's announcement last week about imposing a 10 per cent tariff on all imports to the US, which had caused concerns in the global market. US has imposed 26 per cent tariffs on Indian imports.
The discussion was aimed at progressing towards a fair and balanced trade relationship, as stated by the US State Department spokesperson Tammy Bruce. On Monday, Jaishankar took to social media following the call with Rubio and said that he had spoken with the US Secretary of State about the early conclusion of a bilateral trade agreement.