USA and Brazil Sign Biofuel Cooperation

USA and Brazil Sign Biofuel Cooperation



March 2007 - Brazil and the United 
States have announced a new partnership to boost research and 
production of ethanol and other biofuels. 
The agreement, signed in Sao Paulo today, paves the way for 
increased research and common standards for biofuels to be 
commercialized in international markets. Together, the United 
States and Brazil account for 72 percent of global ethanol 
production. 
President George W. Bush said Brazil has "showed what's 
possible" in terms of biofuels and said he appreciates the 
leadership of President Luiz Inácio Lula da Silva on this 
issue. 
"There’s a lot we can do together. I appreciate so very much 
the idea of Brazil and America sharing research and 
development opportunities," said President Bush, following a 
tour of Petrobras' ethanol and biodiesel production at 
Transpetro Terminal outside Sao Paulo. 
President George W. Bush and President Luiz Inácio Lula da 
Silva discuss biofuel technology during a joint press 
conference at Petrobras Transporte S.A. Facility 
Under a memo of understanding signed earlier in the day by 
U.S. Secretary of State Condoleezza Rice and Brazil Foreign 
Minister Celso Amorim, the two nations pledged closer 
cooperation on researching alternative energy production, 
promoting alternative fuels in the region and developing 
industrywide standards and codes that could lay the groundwork 
for a global biofuels market. 
President Lulu said that the new spirit of cooperation "may 
well mean a strategic alliance that will allow us to convince 
the world that everyone can change the energy blend." 
"We who have polluted the world so much in the 20th century, 
need to make our contribution to de-polluting it in the 21st 
century," the Brazilian president said following the Petrobras 
tour. 
In Brazil, ethanol fuel is produced from sugar cane residue 
known as bagasse. In the United States corn has been the main 
feedstock for ethanol production. 
Most cars in Brazil run either on alcohol or on gasohol. 
Recently, flex fuel engines that run on both have become 
available. Gas stations sell both fuels. 
The United States, potentially the largest market for the 
Brazilian ethanol, currently imposes trade restrictions on 
Brazilian ethanol in order to encourage U.S. domestic ethanol 
production. President Bush told a news conference in Sao Paulo 
that the tariff will remain in place at least until 2009. 
Still, back in Washington the National Farmers Union said 
today that the renewable fuels agreement between Brazil and 
the United States could have a negative impact on family 
farmers, ranchers and American taxpayers. The partnership 
could allow foreign ethanol investors to receive U.S. tax 
subsidies to increase consumption and production of ethanol, 
while directly competing with U.S. production of ethanol. 
Presidents Bush and Lula participate in a biofuel 
demonstration at the Petrobras Transporte S.A. Facility. With 
them, third from left, is Sergio Gabrielle, chief executive 
officer of Petrobas. 
In Sao Paulo, Bush praised Brazil as a pioneer and world 
leader in ethanol production, highlighting Lula’s leadership 
in establishing the International Biofuels Forum, which 
convened its first meeting at the United Nations in New York 
on March 2. 
China, India, South Africa, the United States and the European 
Commission have joined Brazil in the forum, which will convene 
over the next year to discuss ways to promote the sustained 
use and production of biofuels around the globe. 
"Brazil has a successful ethanol program that's come out of 
over 30 years of very much work and technological innovation," 
said President Lula. "We are doing the same thing in our 
betting on biodiesel."
By 2010, Lula said, five percent of Brazilian diesel will come 
from abundant Brazilian plants such as "African palm, 
cottonseed, sunflower, castor beans, and many other seeds." 
Lula said the Brazilian biodiesel program will help create 
jobs and income in the poorest regions of Brazil, especially 
in the northeastern semi-arid region, where many of these 
crops are native. 
President Lula said today's agreement is not just an economic 
partnership between Brazil and the United States but will have 
wider ranging benefits. "A close relationship and cooperation 
between the two leaders in ethanol production will make it 
possible to democratize access to energy," he said. "The 
growing use of biofuel will be an inestimable contribution to 
the generation of income, social inclusion and reduction of 
poverty in many poor countries of the world." 
Regionally, the two nations intend to help third countries, 
beginning in Central America and the Caribbean, to stimulate 
private investment for local production and consumption of 
biofuels. 
The United States and Brazil expect to support feasibility 
studies and technical assistance in partnership with the 
Inter-American Development Bank, the United Nations 
Foundation, and the Organization of the American States. 
"If we fund projects to produce biodiesel and ethanol in 
poorer countries, and then the richer countries buy biodiesel 
that's produced there, then we'll see that investments put 
into those countries have produced results, and even more 
important, generated jobs," President Lula said. 
Multilaterally, the United States and Brazil intend to work 
through the International Biofuels Forum to examine 
development of common biofuels standards and codes to 
facilitate commoditization of biofuels. 
Thousands of protesters made their anti-Bush views known in 
Sao Paulo on Thursday. 
On Thursday, more than 10,000 demonstrators took to the 
streets of Sao Paulo to protest the visit of President Bush 
and the Iraq war. Police drove the demonstrators back with 
tear gas, rubber bullets, and pepper spray. 
The confrontation left about 20 people wounded, between 
policemen, demonstrators and the press. Four protesters were 
arrested but released by night's end. 
In his joint press conference with President Lula, President 
Bush addressed the issue of anti-American feeling briefly, 
saying he was glad to be in a country where dissent is 
tolerated. 
Brazil was President Bush’s first stop in a seven day tour of 
Latin America that will take him to Uruguay, Colombia, 
Guatemala and Mexico. He and First Lady Laura Bush are now en 
route to Montevideo, Uruguay. 





 

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