World

Is McCain's statement that he would eliminate ethanol tariff an electoral suicide?

by Luiz Castro | October 15, 2008 at 08:15 pm

180 views | 4 Recommendations | 2 comments

Brazilian ethanol is higlhy overcharded and can't make the American market. McCain said he would eliminate the tariff on imported sugar cane-based ethanol from Brazil. That will probably have a huge impact on corn's American farmers.

John McCain's tonight statement may have a big impact on voters in several agricultural based States that traditionally are Republicans and depends on corn production on its economy.

New York (Reuters) - Republican presidential candidate John McCain said on Wednesday that if elected he would eliminate the tariff on sugar cane-based ethanol and cut a number of subsidies for ethanol.

"I would eliminate the tariff on imported sugar cane-based ethanol from Brazil," McCain said in a televised debate with Democratic rival Barack Obama.

McCain also said, that unlike Obama, he opposed subsidies for ethanol because they distort the market and could lead to inflation.

U.S. President George W. Bush also opposes the 54-cent-per-gallon tariff on ethanol imports that Congress extended this year until 2010. The tariff has limited U.S. ethanol imports from countries with extensive biofuel programs such as Brazil, which produces 27.5 billion liters of ethanol annually.

In addition, McCain said he would cut the $200 million Market Access Program run by the U.S. Agriculture Department that shares the cost to promote U.S. agriculture exports overseas.

0 See all footage | View Slideshow

Share: email story | add to any | Digg | facebook | stumbleupon

recommend Add a comment

Fairbanks

flagged this story as Good Stuff

at 10:19 on October 16th, 2008

Corn surplus in America is huge.

That will probably have a huge impact on corn's American farmers.

Transportation cost from Brazil would make imported ethanol expensive even without protecive tariff. Alaska, for example does not add ethanol to gasoline because the cost is prohibitive due to zero local manufacure.

eastvanray

flagged this story as Good Stuff

at 11:54 on October 16th, 2008

Luiz Castro, I like this story. It's good stuff.

McCain is saying what is right and not what is politically expedient. US corn farmers need to get off the welfare lines and start farming crops that the market demands without subsidies. Good on McCain for speaking the truth!