03/22/07 Brazil Boosts Exports

Brazil Boosts Exports. I'm Greg Martin with today's Line On Agriculture. A week after the U.S. and Brazil agreed in writing to promote ethanol production and use in Latin and South America - Brazil now says it will try to boost exports to the U.S. Brazil already exports ethanol directly to the U.S. - and duty-free - through nations that benefit from the Caribbean Basin Initiative. Now - Brazil's state-owned "Petrobras' says it plans to start exporting to the U.S. this year. Matt Hartwig is with the Renewable Fuels Association. HARTWIG: Last year in 2006 we imported more than 430-million gallons of Brazilian ethanol, straight from the shores of Brazil. Sao Paulo came into New York Harbor. So there certainly is a market when needed for imports of ethanol. And there's more room for duty-free imports under the Caribbean Basin Initiative - with a 350-million gallon annual quota. But Hartwig argues Brazil's latest plans to sell ethanol into the U.S. should not come at the expense of domestic ethanol or U.S. taxpayers. HARTWIG: It's not as though we're opening new markets or we're constructing barriers to our market, we're just simply asking them to not ask American's to subsidize their ethanol production. Brazil has unsuccessfully sought an end to the U.S. import tariff on ethanol - used to offset a 54-cent domestic ethanol tax credit. So now - Hartwig says Brazil may try to fill more of its quota under the Caribbean Basin Initiative. HARTWIG: The Brazilian government adjusts their mandate for blending of ethanol depending upon where they feel they can make the most money, where they - whether or not they have the supply. The government recently announced plans to boost production from 23-percent to 25-percent of supply. Farm state lawmakers and the domestic ethanol industry continue to oppose an expansion of market access to foreign ethanol at the expense of American taxpayers. But to realize the full range of benefits that ethanol production offers - Hartwig says they need to see the process all the way through - from the industry's inception - which they helped foster - to using the fuel - not replacing foreign oil with foreign ethanol. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.