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Brazilian Ethanol Producers (who make ethanol from sugarcane) have lower production costs than U.S. producers. Indeed, even though it costs 16 cents per gallon to transport ethanol from Brazil to the U.S., which also imposes an import tariff of nearly 60 cents per gallon on Brazilian ethanol, the United States still imports millions of gallons of ethanol per year from Brazil. If Congress really cares about protecting the environment and reducing our reliance on foreign crude oil, why do you suppose we have a large import tariff on ethanol?

International Economics, Economics

  • Category:- International Economics
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