The White House has issued a statement declaring it has no intention to change the US government’s position in relation to the US$0.54-pergallon tariff charged on Brazilian produced ethanol.
During a senatorial hearing on 8 July the newly appointed US ambassador to Brazil, Thomas Shannon, had declared that scrapping the tariff would be “beneficial” to the two nations. But this angered the US ethanol lobby, leading Republican senators to threaten not to confirm Shannon for the post if the White House failed to make its position on the tariff clear. The US ethanol industry is dependent on government subsidies, while Brazil’s is not.
Latin American Weekly Report 06. August 2009