Green Fields: Brazilians suggest end to U.S. ethanol subsidy

Des Moines Register.com
by PHILIP BRASHER & DAN PILLER • business@dmreg.com • October 17, 2010

A spokesman for Brazilian ethanol maker Unica responded to the Environmental Protection Agency's decision on Wednesday approving a 15 percent blend for ethanol with regular unleaded gasoline by suggesting that such approval should trigger an end to the 45-cent-per-gallon subsidy for blenders of ethanol in the United States.

Joel Velasco of the Brazilian Sugarcane Industry Association said "many U.S. ethanol groups have argued recently that after 30 years of tax credits and trade protection they are ready to compete without subsidies provided the government grants them greater access to America's fuel pumps. With the EPA's decision to increase ethanol limits by 50 percent for newer vehicles, that day has arrived."

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