Latin America Report: U.S. Bill Would Extend Tax on Brazilian Ethanol

RenewableEnergyWorld.com
By Renewable Energy World Editors
December 7, 2011

New Hampshire, U.S.A. -- There are new accusations of protectionism being levied against the United States, but this time it's coming from Brazil's sugarcane industry.

As American renewables have come under fire in the U.S., it has sparked a new examination within Congress of subsidies for industries both inside and outside its borders. While recent headlines point to the potential for new tariffs being placed on solar panels being imported into America from China, a new battle is brewing over current duties on ethanol.

House Resolution 3552 calls for an extention of tariffs on foreign ethanol. The move could have significant impacts on the price of gasoline in America and on the ethanol industry in Brazil. According to a representative of Brazil’s sugarcane industry, the legislation threatens a trade war between otherwise friendly nations, and the organization goes on to say it is coming without merit. The group says Brazil eliminated subsidies more than a decade ago and that it has not taxed U.S. ethanol since 2010.

Read more