Last month, U.S. senators introduced competing legislation regarding the ethanol producer subsidy and import tariff, which are set to expire this year. A bill proposed by Democrat Dianne Feinstein (Calif.) and Republican Tom Coburn (Okla.) would eliminate the 45-cent subsidy for ethanol producers and 54-cent tariff for ethanol imports, while legislation from R Senators Charles Grassley (R-Iowa) and Kent Conrad (D-N.D.) would sharply reduce, but still retain, the measures. What are the advantages and drawbacks of the bills and is one likely to pass? How would the legislation affect the ethanol industry? Does Brazil have the infrastructure and capacity to take advantage of new ethanol export opportunities abroad? Experts discuss what they think about this topic.
Copyright © 2011, Inter-American Dialogue, used with permission from the publishers
Inter-American Dialogue's Latin American Energy Advisor. "How Will Changes to U.S. Ethanol Subsidies Affect Brazil?." (2011). http://digitalrepository.unm.edu/la_energy_dialog/108