The U.S. Bill Extending Import Tax on Foreign Ethanol Opposed

A bill filed in the United States House of Representatives - House Resolution 3552 filed by Rep. Charles Rangel, Democrat of New York, which seeks to extend import duties on foreign ethanol - was met with opposition from the sugarcane industry.

The Brazilian Sugarcane Industry Association or Unica said the U.S. should cease imposing tariff on ethanol from other countries since the rationale for the import duty - to offset a tax credit for corn ethanol producers and prevent subsidizing foreign energy production - will be unnecessary with the expiration of the ethanol tax credit this December.

The U.S. Chamber of Commerce supported Unica's position, saying: "These trade barriers prevent U.S. consumers from abundant and potentially more economical choices from friendly nations like Brazil."

"Special interests may cheer this increased trade protection, but the real losers are American drivers since the lack of competition will keep ethanol prices artificially high," Leticia Philips, Unica's representative in North America, said. "Such a blatant move to create further inequities will also risk a trade war between the United States and its trade partners, including friendly nations like Brazil."