Financial Times FT.com

US mulls removal of ethanol imports tariff

By Edward Alden and Caroline Daniel in Washington

Published: May 5 2006 19:05 | Last updated: May 5 2006 19:05

With Congress and the White House scrambling for ideas to bring down soaring petrol prices, the US administration has suggested eliminating the tariff on imported ethanol to help relieve a shortage of the critical fuel additive.

The move would benefit Brazil and other foreign ethanol producers, but has drawn a sharp reaction from farm-state lawmakers who say it would hurt corn farmers and slow efforts to promote energy independence.

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