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USDA previews US-Mexico ethanol agreement

  • Spanish Market: Biofuels, Emissions, Petrochemicals
  • 28/10/26

The US Department of Agriculture (USDA) is in the final stages of talks with Mexico to boost ethanol exports, US agriculture secretary Brooke Rollins said on 26 October in Cedar Rapids, Iowa.

Rollins declined to share details on what she described as a significant commitment from Mexico to increase its US ethanol purchases, but said the two sides had reached an initial agreement in concept after working with Mexico president Claudia Sheinbaum's administration.

"As Mexico continues to integrate more ethanol into its energy mix, we saw that as a massive opportunity for our biofuels, ethanol and certainly… our corn farmers from the Midwest," Rollins said.

Rollins estimated that a completed trade deal would deliver $1.5bn for the US ethanol industry and could increase ethanol exports by 32pc.

Mexico began evaluating whether to incorporate ethanol as an oxygenate for its gasoline supply earlier this year after talks with US officials, but has not released details of a formal proposal.

Mexico allows gasoline to have an ethanol content of up to 5.8pc in most of the country, but prohibits ethanol in Mexico City, Guadalajara and Monterrey, which instead require additive MTBE as an oxygenate under the Nom-016 rules to reduce tailpipe emissions.

Mexico produces limited volumes of ethanol and relies primarily on imports to meet existing demand.

The US exported less than 670,000 bl of ethanol suitable for fuel use to Mexico last year.

The USDA rolled out the American Biofuel Trade Outlook in September, outlining four policy pillars aimed at increasing biofuel export markets, primarily for US ethanol. The plan includes addressing barriers to implementing gasoline fuel blends with up to 10pc ethanol in other countries, along with other priorities.

Additionally the US and Mexico are also still in ongoing separate bilateral negotiations ahead of the USMCA free trade agreement review, after the collapse of US-Canada talks in August.

President Donald Trump's administration has indicated that one of its priorities of any deal is to reduce the US' nearly $156bn trade deficit with Mexico toward zero.


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