RFA claims trade barriers against U.S. ethanol exports

Renewable Fuels Association (RFA) President Bob Dinneen has written a letter to U.S. Trade Representative Ron Kirk requesting the removal of trade barriers, which according to the association, makes it hard to export ethanol to Brazil.
Dinneen said that Brazil’s policies have been harmful to U.S. ethanol producers. The letter, the fourth to Kirk in the past year, calls for the investigation of the Brazilian state of Sao Paulo, U.S. ethanol’s main point of entry, which imposes a 25% import tax, as well as Brazil’s decision to reduce the percentage of ethanol in its gasoline blends from 25 to 18%. He charges that the reduction was for the purpose of making more sugarcane-based ethanol available for export to the U.S.
By treating Brazil-produced sugarcane ethanol as an advanced biofuel under the U.S. Renewable Fuel Standard, the U.S. significantly encourages increased imports from Brazil at the expense of domestically produced corn-based ethanol, Dinneen said. The U.S. ended its secondary tariff on imported ethanol at the end of 2011, along with a tax credit for ethanol blenders.
A representative of Kirk’s office said that they plan to study the matter. (November 22, 2012)