July 31, 2009
US government backs ethanol tariff
The Obama administration appeased a senator who could be crucial in its efforts to pass health-care overhaul, telling Sen. Charles Grassley, R-Iowa, it was committed to protecting ethanol subsidies for US corn farmers.
The commitment, made in a letter from Secretary of State Hillary Clinton and US Trade Representative Ron Kirk, came two days after Grassley had vowed to block the administration's choice for ambassador to Brazil. The US imposes a tariff of 54 cents a gallon on ethanol imported from Brazil. The nominee for Brazilian ambassador, Thomas A. Shannon, had said during a confirmation hearing that lifting the tariff would be "beneficial."
"I'm glad the administration made clear so quickly that the president supports maintaining the 54 cent-per gallon tariff on imported ethanol," Grassley said in a statement. "In light of the administration's very clear response, I'll lift my objection to proceeding to Mr. Shannon's nomination."
The Obama administration is "committed to developing our domestic biofuels industry," Clinton and Kirk wrote. "The administration has no plans to seek changes to the import surcharge."
