Brazil, US say to jointly promote ethanol use in other nations

Sao Paulo (Platts)--9Mar2007

US President George W. Bush and Brazilian counterpart Luiz Inacio Lula da
Silva said a new agreement their countries signed Friday to cooperate on
biofuel development should create a significant shift in the world's energy
usage as nations around the globe seek alternatives to fossil fuels.

During a visit to a Petrobras fuels terminal, Bush lauded Brazil for
being the "world's most efficient ethanol producer," and said ethanol made
from sugar cane, as in Brazil, has many cost advantages over the US'
corn-based ethanol.

Lula said the agreement between the countries on biofuels could prompt a
major shift in world energy consumption.

The leaders said a partnership between the US and Brazil would promote
ethanol use in other countries, particularly in other South American nations
and throughout Central America.

There was no mention by either Bush or Lula about the US eliminating or
reducing the 54 cents/gal tariff Washington levies against imports of
Brazilian ethanol.

Brazil is the first stop for Bush in a five-nation tour of the region.

--Josh Schneyer, newsdesk@platts.com