The U.S. ethanol industry has experienced rapid growth in recent years. Much of this growth in the Midwest has been financed and fueled by local investments, primarily from family farmers, who own collectively over half of the 84 ethanol plants. These plants provide risk mitigation and a preferred market for corn farmers, new jobs and income streams for rural communities. Congress instituted a 54 cent per gallon tariff on ethanol imports to promote the development of the domestic renewable fuel industry.
The Central American Free Trade Agreement (CAFTA) locks in tariff-free access to the U.S. market for foreign alcohol. By enabling ethanol imports into the U.S., CAFTA undercuts decades of work by farmers, rural communities and millions of dollars in taxpayer investments in federal and state programs to build the U.S. ethanol industry.