As Autoblog Green has previously reported, U.S. tariffs on sugar has effectively barred Brazil and other nations with their less expensive and more efficient sugar-based ethanol from competing in the U.S., giving American corn and soy growers the lion's share of the market. But according to the Council on Hemispheric Affairs, the rising demand for corn in the U.S. may prove ultimately beneficial to Mexico, Central, and South American nations in the long run. The increased demand for corn to create ethanol has culled shipments to such countries. Domestic corn growers, who once couldn't compete against the cheap U.S. corn imports, now find their home-grown products priced competitively. Even better, other nations who normally purchase U.S. corn may soon be turning to such farmers as U.S. prices continue to rise.
Poor could lose out in world ethanol market
World to suffer corn shortage as ethanol demand increases
[Source: Council on Hemispheric Affairs via Brazzil Magazine]