RFA Responds to Brazilian Officials re: Credit Offset on Imported Ethanol

President Bush is set to meet with the president of Brazil to discuss a range of issues facing our two countries, including the growing world ethanol market.  While the U.S. ethanol certainly supports developing a world market for ethanol, it believes such development should not come at the expense of American taxpayers or our efforts to develop our domestic program.

Responding to comments by Brazilian President Lula and other Brazilian officials, RFA President Bob Dinneen said:

“Expanding the marketplace for ethanol around the globe is an admirable goal and one that should be commended and explored.  But it must be done in the context of fair trade.  No effort to encourage ethanol production in the Western Hemisphere or around the world should require American taxpayers to bear the burden.  Yet, that is exactly what President Lula and the Brazilian government are asking for in calling on President Bush to end the credit offset which prevents U.S. taxpayer subsidies for foreign ethanol. The credit offset poses no barrier to Brazilian ethanol which has enjoyed more than 30 years of government support dating back to the military dictatorships of the 1970s.”

To read Dinneen’s full comments, click HERE.