The Brazilian Sugarcane Industry Association (UNICA) argued for a global trading market for ethanol that is free of barriers for clean energy during a presentation at the recently concluded National Ethanol Conference in Orlando, Fla.
Speaking on a panel with various other biofuels organization from around the world, UNICA's chief representative in North America, Joel Velasco, challenged the groups to end "senseless policies that tax clean energy and give a free pass to fossil fuels." The future of ethanol, he argued, depends on the expansion of production, wider use, and its free flow in the global marketplace, not just in Brazil or in the US.
The United States imposes a 2.5 percent duty plus a 54-cent-per-gallon levy on ethanol imports. "And the U.S. is not alone in keeping up barriers to clean energy, since Europe charges an import tax of nearly $1 per gallon," Velasco added.
Velasco also reiterated UNICA's continuing efforts to push the Brazilian government to remove the country's 20 percent import tariff on ethanol. "We believe that free trade is good and a two-way street. Brazil should practice what it preaches and reduce or remove its own import tariff," he said.
Other leading international biofuel organizations, from Europe to Canada, Argentina and other countries, were also represented at the annual conference organized by the Renewable Fuels Association, though others were clearly less ambitious is expanding ethanol trade.
RFA trade counsel Ed Hubbard argued that the U.S. ethanol tariff is merely in place to offset the 45 cent-per-gallon subsidy that all ethanol used in the United States receives. However, Velasco shot back saying "unless you are dyslexic, $0.45 per gallon is not equal to $0.54 per gallon."
