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The one word answer is "Castro".
Sugarcane ethanol makes sense in Brazil, since it grows well and they have an integrated industry that powers the ethanol plants with the bagasse from the cane used as feedstock. But here in the US our sugar industry is heavily protected, with tariffs on sugar and a 54 cent/gallon tariff on incoming Brazilian ethanol. Why? The US sugar cane industry is concentrated in Florida, where the politically well-connected Fanjul family is the largest producer (now that US Sugar shut down) and has skillfully lobbied for price supports for decades. They're closely tied to the anti-Castro Cuban community, making them politically difficult to oppose.
In an economically rational world, we'd be importing tanker loads of Brazilian ethanol, which they'd be delighted to sell us, and using it in dual fuel cars. But not in this one.
