Iran Wants to Use Brazilian Ethanol to Circumvent US Trade Blockade

Miguel Jorge with Iran's Mehrabian The Iranian government is interested in using Brazilian ethanol in its vehicles. This information was given by the Brazil’s minister of Development, Industry and Foreign Trade, Miguel Jorge, who led a trade delegation to the Middle East and is in Tehran.

The interest in Brazilian fuel was shown at a meeting between Miguel Jorge and the Iranian minister of Industry and Mines, Ali Akbar Mehrabian. Both opened, on Tuesday (13), at the Parnasian Esteghlal International Hotel, the business meetings between Brazilian and Iranian executives. A group of 86 men and women from Brazil participate in the delegation.

According to information disclosed by Miguel Jorge, Iran is interested in Brazilian ethanol due to the problems it is facing with gasoline supply. The country in the Middle East produces oil, but it does not have refineries and is having difficulties importing gasoline due to the trade blockade it faces.

Ethanol, according to the Brazilian minister, would be an alternative. Miguel Jorge believes that it would have to be bought in Brazil – and not produced in Iran – as the land in the country is not very appropriate for agriculture.

According to the Brazilian minister, it is possible for the Iranians to invest in funds connected to Brazilian ethanol mills. Attracting Iranian investment in this area, in ethanol and agriculture, in fact, was one of Miguel Jorge’s objectives in the mission.

At the opening of the meetings, on Tuesday morning, the minster spoke to those present about the Brazilian experience with flexible fuel technology, in which a vehicle may run on ethanol, gasoline or any combination of the two.

The delegation’s visit prompted a series of discussions about cooperation. According to Mehrabian, during the visit that Brazilian president Luiz Inácio Lula da Silva has scheduled to Tehran, in May, an agreement in the mining area should be signed. According to Miguel Jorge, cooperation may help business in the sector.

In the Iranian capital, representatives of Vale, a Brazilian mining company, met with mining sector representatives to discuss possible business and partnerships. The Iranian minister also showed interest in the Brazilian experience with production of electricity.

During the meeting this morning, minister Miguel Jorge pointed out the advances in relations between Brazil and Iran, which took place mainly after president Lula was inaugurated in office, in 2003. Brazilian exports to the country rose from US$ 491 million in 2002 to US$ 1.2 billion last year.

Mehrabian said that both countries are going to make an effort to simplify trade, including product transport and financing. The ministers called on Brazilian businessmen present to help boost trade.

Anba

Tags:

You May Also Like

Brazil Market Has Fallen 51% in 2008, Worst in Country’s History

The falling prices of oil, which hurt state-controlled oil multinational Petrobras, the most important ...

Brazil Reaches 190 Million People, But Will Stop Growing in 30 Years

The population of Brazil reached 189.6 million and will cease to grow in 30 ...

In Brazil 85% of Internet Users Do Social Networking. Google’s Orkut Is King

Marketing research company comScore with headquarters in Reston, Virginia, a leader in measuring the ...

Brazil and Argentina

Free Trade Makes Mercosur Impossible, Brazil a Killjoy and the US a Savior

Free trade policies prevent regional integration that would benefit Latin America and permit the ...

Beauty and the Beasts

The precarious romance between Xuxa and Luciano Zsafir, the father of her baby, seems ...

Brazil’s Vote-Buying Scandal Still Impacting Stocks

Latin American stocks were mixed to higher on the day, with Brazilian stocks posting ...

Brazilian Optimism Is Driving Dollar Down

The Brazilian real, Brazil's currency, had its biggest weekly gain in almost two months ...

Brazil Cotton Maker Cataguases to Invest US$ 39 Million in Modernization

Brazilian Companhia Industrial Cataguases, a manufacturer of cotton fabrics, is going to invest 73.5 ...

Brazilian Army Worried About US Military Build Up on Brazil’s Borders

It is because of the strategic importance of South America that the United States ...

Waiting for President Godot in Sí£o Paulo, Brazil

Yesterday Ibope and Datafolha both published their latest polls. According to Ibope, compared to ...