US imports of ethanol from Brazil have risen to their highest level since 2008 as a result of environmental regulations that favour Brazilian fuels produced from sugar over US product made from corn.
The US exports ethanol to Brazil as well as importing it, and US industry groups have raised concerns that an almost identical product, albeit made from different feedstocks, is travelling thousands of miles in both directions.
Bob Dinneen, the president of the Renewable Fuels Association, the industry group, said: “We have the bizarre situation where we are exporting to them while they are exporting to us. It’s inefficient.”
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