Ethanol in the US and Brazil

I just read an article that states US ethanol prices are lower than Brazil ethanol prices and that Brazil has created difficulties for the import of ethanol from the US.  If I remember correctly, up until a little over a year ago, the US had a surcharge tariff of approximately 54 US cents per gallon on the Brazilian product.  The surcharge went away but it seems that it was no longer needed as the US improved its production costs.  In Brazil, on the other hand, production of ethanol has been falling and the industry has been complaining about their costs.  As gasoline prices have been kept low as a means of controlling inflation and to gain political support, this is another factor depressing the demand for the sugar cane based product.

Here is the link to the article:http://brazilportal.wordpress.com/2013/01/18/end-all-trade-barriers/

 

 

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