Brazil weights ethanol case

The International Herald Tribune (New York Times)
The Associated Press
Published: July 30, 2008

GENEVA: Brazil is likely to ask the World Trade Organization to open a blockbuster case into U.S. ethanol tariffs, a senior official said Wednesday, outlining the first possible dispute to arise as a result of this week's global trade talks collapse.

Roberto Azevedo, Brazil's WTO ambassador, said there was a "strong possibility" that the Latin American country would make a formal complaint in September. Brazil would then be able to ask for the establishment of a WTO panel if a two-month consultation period with the United States fails to produce an agreement.

The case would concern a U.S. ethanol tariff of 54 cents per gallon, which critics say is designed to protect American corn farmers who cannot produce the fuel as cheaply as sugarcane growers in Brazil.

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