Abstract

The International Trade Commission agreed that there is a reasonable indication that large imports of duty-free fuel ethanol from Brazil threaten material injury to the US fuel ethanol industry. In addition to anti-dumping and countervailing duty suits against Brazil, both the Caribbean Basin Initiative and tariff loopholes figure prominently in the current struggle to cut off large-volume imports. The result has been to bring trade policy and diplomacy into the picture. Supporters of the imports contend that domestic producers will not be able to meet anticipated demand if the market takes off as expected, but the domestic industry has been growing along with the market. The author reviews the arguments and legal claims made on both sides of the debate, which include government farm policies. 6 figures.

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