In the aftermath of another round of stalled World Trade Organization talks this week, a senior Brazilian official said the country is considering making a formal complaint against U.S. ethanol tariffs. The Associated Press reported that Roberto Azevedo, Brazil's WTO ambassador, said there was a "strong possibility" that the country would file a complaint in September against the 54 cents per gallon tariff on imported ethanol.
The issue of ethanol tariffs emerged in the latest round of WTO talks. In the final days, Brazil came behind a proposal by WTO chief Pascal Lamy. In exchange, the Latin America country sought new opportunities for its ethanol exporters from the U.S. and European Union, explaining that petroleum products such as gasoline face no taxes. One U.S. lobbyist said the collapse of the talks "stems principally from an intransigence in the U.S. position regarding ethanol tariffs."
The 54-cent ethanol import tariff was extended as part of the 2008 farm bill. Ethanol supporters say the tariff counters the 51-cent blenders credit and encourages domestic production. Brazil said the tariff protects U.S. farmers from competing against cheaper sugarcane ethanol.
Source: Feedstuffs
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