Date: April 2, 2008

Source: Cattle Network

LONDON --The state of Florida is pressing the U.S. government to further open its ethanol market to imports from Brazil and to stop protecting its domestic industry, said James McDonald, counsel to the Inter-American Ethanol Commission Wednesday.

Given Florida's proximity to Brazil, the Inter-American Ethanol Commission - set up to strengthen partnerships between the U.S. and Brazil, lead by Florida - argues that it is more economical for Florida to import Brazilian ethanol than transport ethanol from the U.S. Midwest where it's predominantly produced.     

However, the U.S. currently has a $0.54 per gallon tariff on imported ethanol, which the commission would like to see removed to create a more level playing field.

Matt Hartwig, spokesman for the U.S. ethanol industry trade group, the Renewable Fuels Association, denies that the tariff acts as a barrier to imports.

"The congress does not believe the (U.S.) taxpayer should subsidize foreign ethanol industry," Hartwig explained.

The U.S. is anticipated to experience a significant demand versus supply gap in ethanol by 2012, said McDonald.

Brazil is the world's leading producer of sugarcane-based ethanol, considered the most energy efficient commonly used biofuel, while the U.S. is the world's largest producer of corn-based ethanol.

"Sugarcane ethanol has 56% less greenhouse gas emissions than gasoline," compared with 22% for corn, said McDonald.

A global organization, such as the United Nations, needs to step in and create international standards for ethanol which will protect the environment, McDonald added.