Eliminating ethanol subsidies and duties could help the fuel to become a globally traded commodity like oil, said Antonio de Aguiar Patriota, Brazil's ambassador to the U.S., according to Bloomberg News. "The U.S. imposes a 54-cent-a-gallon tariff on imports of biofuels, including ethanol from Brazil, the largest producer of the alternative fuel from sugarcane," Bloomberg said. "Ethanol is made mainly from corn in the U.S. As the Doha round of free trade talks progresses, 'we can only be in favor of eliminating duties and to the extent possible reducing subsidies to create a freer environment for trade,' Patriota said after a speech hosted by the Chicago Council on Global Affairs. 'Oil is traded worldwide without these trade obstacles,' he said. 'This is what we'd like to see in the future, ethanol becoming a true commodity.' "

(Bloomberg News, June 3, 2008)

(http://www.bloomberg.com/…)

U.S. ethanol industry officials say that lifting ethanol tariffs would essentially result in U.S. taxpayers funding foreign-made ethanol through subsidies and tax credits. Another school of thought is that lifting the tariff would open U.S. borders to 'cheaper' ethanol coming from Brazil and competing with U.S.-made ethanol, providing a better pricing environment for consumers. (Todd Neeley)