Brazilian lobby threatens trade war over US ethanol tariff

BrighterEnergy.org
12/8/10
By James Cartledge

Brazil’s sugarcane industry has threatened to stir up an all-out trade war between its government and the United States, over proposals to extend America’s import tariff on ethanol.

The Brazilian Sugarcane Industry Association (UNICA) issued a statement yesterday complaining at legislation being negotiated in the current lame duck session of Congress.

The trade group said it would urge the Brazilian government to initiate dispute settlement proceedings at the World Trade Center if proposals were adopted to extend the 54 cent per gallon tariff on foreign ethanol entering the US.

The Association said the import tax was effectively being doubled, because the subsidy it was designed to counter in order to prevent taxpayer support for foreign producers looks likely to be lowered by nine cents per gallon.

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