USA subsidizes EU bio-fuel???

[Mr Earl]

It's an incredible story. You have to wonder what idiots thought this up????

A 2004 US law encouraged US diesel producers to blend more biodiesel into their fuel mixtures. Unfortunately, the tax credits in the law subsidize not only blended fuel destined for domestic US consumption, but also biodiesel ultimately exported abroad. The $1.00 per gallon US subsidy allows American exports to enter the EU market at a price below the raw material costs of European producers.

Worse still for US taxpayers, the law also inadvertently allows foreign companies to claim the tax credit after simply blending a drop of US mineral diesel into their mixture. Such 'blended' foreign biodiesel is in most cases re-exported to the EU ("splash and dash"), further harming European producers. Congressional moves to repeal the export subsidy and "splash and dash" loopholes failed in 2007.

"What we are witnessing here is US taxpayers effectively subsidizing European motorists to the tune of around $300 million last year. And that figure is set to be even higher this year - all while Americans themselves are suffering at the pump. We appreciate Congressional efforts to address the problem last year but regret that, in the end, the proposed remedies didn't stay in the Energy Bill eventually signed by President Bush. As I work with Members of Congress in the coming months, I will continue raising this issue and push for a resolution; hopefully in time to stave off an expected complaint from European industry."

linkypoo
And the Europeans are bitching about it too boot! WTF!

[sabang]

There is a certain irony in the EU complaining about another nations subsidies.

[Butterfly]

I think it's all fair, America little adventure in Iraq has created a speculator heaven for the oil market, putting pressure on world prices and on everyone,

the US need to pay and compensate the world for their mistake,