UNICA supports deal to end ethanol tax and import tariff

'Brazil ended trade-distorting subsidies for ethanol more than a decade ago and eliminated its ethanol tariff early last year. We are pleased that this agreement would have the United States do the same. As the world's top producers of ethanol, the US and Brazil should lead by example in creating a free market for clean, renewable energy.'

This is a statement released by the Brazilian Sugarcane Industry Association (UNICA) on 7 July 2011. The announcement followed the news that a two-way agreement could put a stop to the ethanol tax credit and import tariff on 31 July. This is five months sooner than when the termination was originally scheduled.

North American representative for UNICA Leticia Phillips states: 'Ending the 30 year old tariff on important ethanol will help lower fuel prices and provide Americans with greater access to clean and affordable renewable fuels like sugarcane ethanol.

'Consumers win when businesses have to compete in an open market, because competition produces higher quality products at lower costs. The same principle holds true for renewable fuels. Allowing other alternative fuels like sugarcane ethanol to compete fairly in the US will save American money, cut dependence on Middle East oil and improve the environment.'