RFA says McCain, Barrasso wrong on ethanol tariff's legality
In Washington, the Renewable Fuels Association replied to comments reportedly made by Senators John McCain of Arizona and John Barrasso of Wyoming in meetings with Brazilian officials, in which they questioned the legality of the ethanol tariff.
The RFA responds: “a 2008 letter to Senator Feinstein from U.S. Trade Representative, Susan Schwab, states that the trade office was “unaware of any WTO obligation that the U.S. should reduce the tariff or other charge on imported ethanol.” The unique, market-based structure of the tax incentive to blend ethanol, and the secondary tariff designed to offset tax benefits received by foreign imports of the fuel, that has precluded any claim or challenge to the U.S. ethanol program under the WTO…because VEETC is available to both imported and domestically produced ethanol, the secondary tariff is necessary to ensure that U.S. taxpayers are not subsidizing foreign ethanol producers. Third, the secondary tariff has been properly notified and scheduled according to WTO procedures.”
Category: Policy
