Senator Chuck Grassley today made the following comment after reports that the Bush administration will be making changes to the ethanol import tariff in its budget that will be released to Congress on Monday. According to news reports, the comments came from Energy Secretary Sam Bodman in an address at the U.S. Chamber of Commerce.
“By lifting the ethanol tariff, we’d end up subsidizing Brazilian ethanol. I can't figure out why Secretary Bodman would want the United States to risk becoming dependent on Brazilian ethanol when we’re already dependent on Middle East oil. His comments really do a disservice to President Bush who has been the most pro-ethanol president we've ever had.
“In addition, the United States already provides duty-free treatment for Brazilian ethanol that is merely dehydrated in the Caribbean Basin Initiative countries. Brazil has yet to make full use of this program. I don’t see why we should bend over backwards to provide yet more duty-free treatment for Brazil’s ethanol producers.”