USA and Brazil announce ethanol agreement

The USA, Brazil and the Brazilian ethanol industry, represented by UNICA, announce the finalization of an agreement that will eliminate U.S. tariffs on Brazilian ethanol. In return, the Brazilian ethanol industry will become a major partner in the U.S. plans to build and maintain bio-refineries.

These plans were outlined by President Obama during a May 5, 2009 speech and have thus quickly been further developed.

Both Brazilian and U.S. delegates present at the Barcelona Climate Conference have expressed their great satisfaction with the deal. U.S. delegate Christina Papadam: “We are very pleased to make quick progress with our promises to the American people. This deal will not only decrease our dependence on OPEC energy, but will also help in our ongoing efforts to make the U.S.A. a leader and example in the fight against climate change, whilst expanding our own capacity for bio-fuels.”

On the other hand, Brazilian UNICA observer Simon Broekema told the Associated Press both Brazil and UNICA “are very pleased with this win-win situation. The tariffs were an obstacle to both fair competition and a greener U.S.A. and thus had to be removed. In return, we are very happy to help the U.S.A. with our significant expertise in the bio- ethanol area and to be an important partner in America’s battle against climate change. We see this deal as the culmination of the ongoing discussions President da Silva and President Obama had earlier this year and strongly encourage the European Union to follow the U.S.A.’s example”.

More concrete details on the deal were not immediately released.