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Crist Says He Backs Reducing Tariff On Brazilian Ethanol

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By ALAN CLENDENNING, The Associated Press

Published: November 6, 2007

SAO PAULO, Brazil - Florida Gov. Charlie Crist said Monday that he supports a reduction in the U.S. tariff that makes Brazilian ethanol expensive for American fuel suppliers, but suggested that serious debate over the tariff is unlikely until after the 2008 U.S. presidential election.

"If you ask for lowering the tax, I'm that guy," Crist said at the start of a five-day trade mission aimed at boosting the state's ties with South America's largest nation.

The tariff of 54 cents per gallon will expire in 2009, and Crist said he would lobby for a reduction among members of Florida's congressional delegation who will eventually vote whether to keep the tariff, reduce it or eliminate it.

Experts, ethanol producers and Brazilian President Luiz Inacio Lula da Silva say the tariff prevents significant U.S. imports of Brazilian ethanol made from sugar cane.

But Crist agreed that any move toward reduction of the tariff is unlikely over the next year because it would be too controversial during the U.S. presidential election campaign. U.S. farmers and agribusiness companies that produce ethanol from corn strongly oppose a tariff cut.

Crist, a Republican, also said he wants Florida ports to become the gateway for imports of Brazilian ethanol, which could be used widely in the fuel-hungry state because it lies far from corn- and ethanol-producing Midwestern states.

Brazil is the world's second-largest producer of ethanol after the United States and is the largest exporter. It also consumes vast amounts of the fuel for its passenger vehicles.

Crist made the comments on the tariffs six months after former Florida Gov. Jeb Bush, the brother of President George W. Bush, predicted in Sao Paulo that the U.S. tariff will be reduced or eliminated within several years.

Members of Crist's administration are working on a proposal to be submitted to the governor late next year that could mandate that Florida vehicles use gas containing 10 percent ethanol, though that measure would require approval by Florida lawmakers.

After leaving Brazil on Friday, Crist heads to Argentina and Chile.

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