Brazil wants in on U.S. ethanol

Dan Grech Sep 13, 2007
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Brazil wants in on U.S. ethanol

Dan Grech Sep 13, 2007
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Scott Jagow: This week, Brazil said it’ll ask the World Trade Organization to investigate U.S. farm subsidies for ethanol. Brazil is the second-largest ethanol producer behind the U.S., and of course, it doesn’t want to be disadvantaged. Ethanol has become one hot commodity, after all. Dan Grech has more from our America’s Desk at WLRN.


Dan Grech: Brazil wants access to America’s fast-growing market for alternative fuels. But high import tariffs and subsidies for U.S. producers have largely kept foreign ethanol out.

David Adams writes the blog The Fueling Station:

David Adams: There’s something of a false debate here. Even if the United States were to drop its tariff, Brazil actually doesn’t have that much ethanol to provide the United States.

Brazil already struggles to keep up with domestic demand. But Adams says the country has its sights set on a green future.

Adams: If those tariffs were removed, this would provide a huge stimulation for greater investments in the ethanol industry in Brazil.

More than $15 billion is now being invested in new ethanol mills in Brazil. But the country bets investment could be much higher.

I’m Dan Grech for Marketplace.

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