Subsidizing US ethanol exports

Written by dkoplow Posted: 04/13/2011 9:13 AM EDT

Subsidy arbitrage in international trade is not a new issue.  It is popping up again in the biofuels sector, this time regarding the collection of ethanol blending credits on fuel that is then shipped out of the United States.  Not surprisingly, producers in the receiving markets are not happy about it.  Robert Rapier has writting a good overview of the issue and the industry's denials ("Clarifying misconceptions about taxpayer-subsidized ethanol exports in the United States") for the most recent Global Subsidies Initiative newsletter.