This report discusses ethanol consumption which has grown significantly in the past several years with the establishment of a renewable fuels standard in the Energy Policy Act of 2005 (P.L. 109-58). This standard requires U.S. gasoline to contain a minimum amount of renewable fuel, including ethanol.

As part of its overall trade strategy, the Bush Administration over the last year began negotiating bilateral free trade area (FTA) agreements with four regional blocs or countries. Negotiations on a U.S.-Central American Free Trade Agreement (CAFTA) involving Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua began in late January 2003 and are currently scheduled to conclude this December. While negotiators have reportedly made progress in a number of areas, efforts to formulate a framework for handling agricultural trade have been slow.