U.S. Govt: Dropping Ethanol Tariff Good for Americans

ITC Sugar Ethanol Welfare Benefits from Free TradeThe U.S. International Trade Commission (ITC), which has examined the cost of that protection in periodic reports for nearly 20 years, just published a report today that says removing the tax on ethanol imports would improve U.S. welfare by $356 million annually. the U.S. Overall, ITC says U.S. consumers would be about $4.6 billion better off each year if the country eliminated import barriers for sugar, dairy, ethanol, clothing and other goods. Just by removing the sugar protectionism, the U.S. consumer would benefit by over $500 million a year.

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  1. [...] UNICA’s statements come amid speculation that Brazil could potentially import ethanol from the U.S. due to stronger than anticipated demand for ethanol in Brazil and the weak dollar. UNICA, however, appears to be providing evidence that the decision to remove the tariff predates the run up on ethanol prices.  In an op-ed in today’s Brazilian newspaper, Estado de Sao Paulo, UNICA’s President argued Brazil should lead the way in eliminating trade barriers, which would assist the country in pushing for the reduction or elimination of tariffs in other regions of the world, including the United States. (See related story: U.S. Govt: Dropping Ethanol Tariff Good for Americans) [...]

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