US Farm Bill Worries Brazil Ethanol Group; WTO Case Possible

CattleNetwork.com
5/9/2008 9:45:00 AM

SAO PAULO (Dow Jones)--Brazilian sugarcane ethanol lobby Unica is cautiously awaiting final results on a U.S. Farm Bill that could impact its ethanol export market.

Unica said in a press release on Friday morning that a bipartisan congressional decision in Washington D.C. to keep the $0.54 per gallon tax on Brazilian ethanol imports to the U.S. until 2010, coupled with a relaxing of fiscal incentives for blenders, "increases the likelihood of discrimination against Brazilian ethanol."

Brazil's Sub-secretary for Economic Affairs, Roberto Azevedo, said the country is considering going to the World Trade Organization to challenge the Farm Bill's ethanol rules.

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