Ethanol production and exporter Brazil exported a total of 1.76 billion liters of ethanol to the United States in 2006, making it the largest fuel ethanol supplier in the United States.
In 2006, the United States produced 18 billion liters of fuel ethanol and 21 billion liters of consumption. The difference was filled by imports. According to the bill passed by the United States Congress, by 2012, the consumption of biofuels such as ethanol in the United States will reach 28.4 billion liters. US President Bush recently stated that by 2017, the use of biofuels in the United States will reach 132 billion liters, and gasoline consumption will be reduced by 20%.
At present, the United States imposes a tariff of 0.143 U.S. dollars on most imported fuel ethanol, while domestically produced corn fuel ethanol enjoys a loan guarantee of 0.135 U.S. dollars per liter. However, with the rise in corn prices, the price advantage of Brazilian sugar cane fuel ethanol has gradually emerged. US corn fuel ethanol, including production and transportation costs, cost US$ 0.5 per litre, while Brazil’s sugar cane fuel ethanol is only US$ 0.46 per litre, including production and transportation costs, and customs duties. If the United States cancels the above-mentioned tariffs and subsidies in the future, the Brazilian fuel ethanol will be more competitive.
In 2006, the United States produced 18 billion liters of fuel ethanol and 21 billion liters of consumption. The difference was filled by imports. According to the bill passed by the United States Congress, by 2012, the consumption of biofuels such as ethanol in the United States will reach 28.4 billion liters. US President Bush recently stated that by 2017, the use of biofuels in the United States will reach 132 billion liters, and gasoline consumption will be reduced by 20%.
At present, the United States imposes a tariff of 0.143 U.S. dollars on most imported fuel ethanol, while domestically produced corn fuel ethanol enjoys a loan guarantee of 0.135 U.S. dollars per liter. However, with the rise in corn prices, the price advantage of Brazilian sugar cane fuel ethanol has gradually emerged. US corn fuel ethanol, including production and transportation costs, cost US$ 0.5 per litre, while Brazil’s sugar cane fuel ethanol is only US$ 0.46 per litre, including production and transportation costs, and customs duties. If the United States cancels the above-mentioned tariffs and subsidies in the future, the Brazilian fuel ethanol will be more competitive.
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