Free Trade
So Reuters reports that Senator Charles Grassley wants to delay confirmation of President Obama's choice for ambassador to Brazil because he thinks that we might want to remove the tariff on ethanol:
Now there is no question here that Brazil has a comparative advantage in the production of ethanol. It is also true that Brazilian ethanol actually decreases carbon emissions whereas we may be able to make a case that US ethanol actually uses more fossil fuel that it saves.
This is a place where free trade actually works. It is also a place where a small, entrenched group benefits from the trade barriers. Of course they will win. I suppose that is why they call themselves the Real Americans and look down their noses at us city folks.
A Republican senator threatened on Tuesday to delay approval of President Barack Obama's choice of ambassador to Brazil because the nominee advocated ending a U.S. tariff on ethanol imports.I quote extensively without link because wire service links die after a few days."As a senator and as a presidential candidate, President Obama supported keeping the U.S. tariff on imported ethanol," Senator Charles Grassley, who comes from the major corn-producing state of Iowa, said in a statement.
"Now, the president's nominee for ambassador to Brazil says the removal of the tariff would be 'beneficial.' It's important to know whether the administration's position has changed before this nomination goes forward," Grassley said.
Grassley is one of the staunchest defenders of the ethanol tariff in the U.S. Congress. Brazil, the world's biggest exporter of ethanol and its second largest producer after the United States, wants the tariff removed.
Now there is no question here that Brazil has a comparative advantage in the production of ethanol. It is also true that Brazilian ethanol actually decreases carbon emissions whereas we may be able to make a case that US ethanol actually uses more fossil fuel that it saves.
This is a place where free trade actually works. It is also a place where a small, entrenched group benefits from the trade barriers. Of course they will win. I suppose that is why they call themselves the Real Americans and look down their noses at us city folks.



Republicans for tariffs. Who knew.
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