Lula & Bush Didn’t Discuss What Brazil Wanted Most: Tariff Reductions

Presidents Bush and Lula talk about ethanol at Transpetro, in São Paulo, Brazil Brazil and the United States signed today, March 9, a memorandum of cooperation in the biofuels sector. The agreement provides for an advance in research and development of technology for ethanol and biodiesel production.

"The United States are going to be an extraordinary partner in this enterprise," said the president of Brazil, Luis Inácio Lula da Silva, during the visit of George W. Bush, president of the United States, to Transpetro, a subsidiary of Petrobras, in the municipality of Guarulhos, in the southeastern Brazilian state of São Paulo.

"I hope that Brazilians and Americans are optimistic regarding the use of alternative sources. There is a great potential," Bush said.

According to him, investment in biofuels is considered a matter of national security for the United States, which have set a goal of reducing gasoline consumption by 20% over the next 10 years. "We are willing to diversify, we must find alternatives for petroleum," he stated.

Bush also said that the United States intend to increase alcohol consumption in the country from 5 billion gallons per year to 35 billion gallons.

"We have already invested US$ 12 billion in research for new technologies that will allow us to achieve economic independence and better environmental quality," he claimed.

The president of the United States also said that his country is going to invest US$ 1.6 billion on research over the next 10 years, with the objective of developing alternative sources.

According to Lula, Brazil and the United States must also form alliances with other countries in order to diversify production of biofuels. Initial work should be carried out in Central American and Caribbean countries to encourage local production and consumption.

Lula also stated that planet Earth must be cleansed from pollution through the use of biofuels. "Dependence on fossil fuels must be overcome in order to reduce global warming," he said.

Another point touched upon by the Brazilian president was the fact that the increased number of sugar cane plantations generated new jobs, especially in the northeastern semi-arid region. "The gains stemming from the creation of new job positions in Brazil are already being reflected on the economy. Brazil has more than tripled its cane production," he said.

The memorandum of intention signed by the two countries also forecasts the expansion of the biofuels market, through cooperation at the International Biofuels Forum, established by the United Nations.

Nevertheless, the memorandum does not address the reduction in export tariffs for ethanol to the United States, one of the most anticipated issues for Brazilian businessmen.

The agreement was signed this morning by the Brazilian minister of Foreign Relations, Celso Amorim, and by the secretary of state of the United States, Condoleezza Rice.

During Bush's visit to Transpetro, also in attendance were the president of Petrobras, Sérgio Gabrielli; the Brazilian minister of Development, Industry and Foreign Trade, Luis Fernando Furlan, and minister Amorim.

A subsidiary of Petrobras in the transport sector, Transpetro owns 16 tanks with capacity for storage of 164 million liters of diesel, aviation kerosene, gasoline, anhydrous alcohol, and hydrated alcohol. President Bush was received at the Petrobras truck fueling station, which supplies fuel to 250 trucks per day.

Gabrielli showed the ethanol production process to the president of the United States, and spoke of Petrobras' projects in the biofuels sector. Currently, 12% of the Brazilian fleet uses flex fuel motors (which run both on alcohol and gasoline).

According to the president of the National Association of Vehicle Manufacturers (Anfavea), Rogélio Golfarb, the goal is to have a fleet of 15 million flex-fuel motor equipped vehicles by 2013, which will account for 70% of the national fleet.



  • Show Comments (18)

  • Ric

    WhatÀ‚´s a “cameback”? E para beber? Quer aumentar os fries? SÀƒ³ sandwich ou completo?

    Why is a Big And Tasty a medium sized unit in L.A. and here the Big Tasty is a huge and expensive model? They donÀ‚´t tell us that at McDonaldÀ‚´s U.

    How can anything increase by ten folds, except maybe a pleated drape?

    You remind me of the Quiznos kids.

  • laugh laugh laugh…

    Ric Ricardo bandidoooo!!!
    Wow what a cameback!!! “Cuma” I rest my case Rickyyyyyyy… you are one dum MF guy or should I say GAY???? You know Ric if you ever decide to blow your brains out, the average world I.Q would increase by ten folds!!! laugh laugh laugh…how is that Mcdonald’s job of yours in brazil going? I can picture you behind the counter asking important meaninfull questions like ” Is that for here or to go Sir? laugh laugh laugh….

  • Ric

    Say again? My role has nothing to do with the Tyrol.

  • Roberto C.

    Hey, how come this
    fucking Ch.c guy dosen’t responds to the comments from
    Ch.c 1st. grade teacher (before he dropped out) ? That makes me believe its true, Swissterland is in fact a decadent shitwhole.
    And for you Ric are you swiss too or just fucking each other?

  • Ch.c loves you baby!!

    Rick Ricardo,
    Your thick outdated knowledge together with your inability to comprehend the Swiss Economy; degrades the bipeds sapiens of the world to levels that only you and ch.c are completely happy with!!! Today’s Switzerland can not support its own weight…what part of this statement you don’t understand ” (3 percent of the Swiss population owns 95 percent of the country) and guess what? The 3 percent consists of Germans and Italians, and sit tight because the Chinese are coming too! Get it? So one can only conclude that the À¢€œcaipirinhasÀ¢€Â are eating your brain away to a point of no return; and ultimately you and Ch.c can than, become one!!!
    Maybe one day, you will start to understand the genesis of this endless source of anger and bigotry of titanic and uncontrollable proportions that permeates around hereÀ¢€¦ nooooot you À¢€˜ll never get it!!!

  • Ric

    Out of Context?
    WasnÀ‚´t a discussion going on re: a small country called Switzerland? My comment about money didnÀ‚´t seem appropriate in that context? Made no sense to you? And who are those guys in the background, he, he, and he?

  • Kisses from your man.

    That is what I like about you Ric Ricardo!!!
    You don’t have much to say or contribute but when you do say, is usually something with no context and out of the blue…hoping somebody may find it profound…he he he…

    “He who controls the money, Controls almost everything else.

    Wow, how original!!!

  • Ric

    He who controls the money
    Controls almost everything else.


    The site is called “SWISSINFO” and is updated daily, however keep in mind that the site is regulated by the Swiss government so the actual numbers are very distorted to make their little shiiiiit whole country look better !!! Enjoy it, laugh.

  • jan

    any idea about the trade barriers posed by Brasil, in general the quality of products make cry, if you want some good quality it has to be imported, ie. a car from Germany will cost you 130 % on import taxes, duties and all other kind of your famous IMPOSTOS, do you think Germany will pay these, please be realistic, and do not write that Brasil has to pay 50 cents on a gallon…

  • Hummmmm

    Hummmm these are interesting facts on the Swiss economy and society as a whole.
    Could the writer indicate the sources of his or hers comments?
    IÀ¢€™m an Anthropologist by training, and presently working on my master in Sociology. This would be a good topic for discussion,
    Thank you.
    H.U.M, Phd.

  • bienchido

    The U.S. demands the world open up to “free trade” but then puts barriers to free trade on developing countries in the form of tarrifs. It’s just another example of U.S. hypocracy.

  • Ch.c 1st. grade teacher before he dropped out

    Ch.c the little math professor??? laugh laugh laugh…You are killing me..stop!!!
    I canÀ¢€™t stop laughing!!! You…and Math??? I can bring up dozens of screw-ups you have made here in this stupid forum. Your math background is equivalent of a 12 grader at best!!! Of course in Switzerland this must be quite an achievement!!! Laugh laugh laugh!!!

    How about these headlines from the land of the know À¢€“it-all Ch.c, folks!!!
    À‚·The number of people claiming some form of benefit rose 10% in 2003 to 300,000.
    À‚·The Swiss Conference for Social Welfare estimates that number will rise to 400,000 within three years.
    À‚·The Swiss charity Caritas estimates that 850,000 people live on or below the poverty line in Switzerland.
    À‚·The canton of Ticino saw the steepest climb in unemployment of 0.5% to 4.8%
    À‚·GraubÀƒ¼nden followed with an increase of 0.3%.
    À‚·Geneva remains the worst hit region with a jobless rate of 6.8%.
    À‚·ZurichÀ¢€™s unemployment rate stands
    À‚·Geneva was the worst-hit canton with an unemployment rate of 6.7%.
    À‚·Jura followed with 5%.
    À‚·Canton Vaud and Zurich were not far behind with 4.8%.
    À‚·NeuchÀƒ¢tel’s rate stands at 4.5%.
    À‚·The Italian-speaking canton of Ticino has an unemployment rate of 4.3%.
    Laugh laugh laughÀ¢€¦what a shit whole of a country!!!! Only 7 million people and THEY still canÀ¢€™t get shiiiiiiiiit together!!! Laugh laugh laughÀ¢€¦.

    You are doing really well CH.C À¢€¦CONGRATS !!!

  • alltheway

    wrong conclusion ? . pray tell, how does the correct math change the conclusion ?

    your math correction is good, but you shoot yourself in the foot in front of everyone by saying it is the wrong conclusion ? .. I supported my conclusion, the factor of x10 strengthned it, so tell everyone . what supports your “conclusion” . or is this another one of your opportunities to never pass up the chance to be wrong ?
    .. so, tell us, educate us, show your smarts, why do u say the conclusion is wrong ? your note contradicts itself, but everyone sees that except you. Perhaps it was an unfinished note ? what’s the reason the conclusion is wrong ? ..
    .. ..any idea why you said what you did ?

  • ch.c.

    Woaaaahhhhh….alltheway !!!!!!
    I liked your first comment, where I would have changed it to : good job Brasil, you grow, develop…..your slavery and poverty ! Pay the 50 cents and keep the poverty !

    But your second comment makes me hesitate if you are a foreigner or a brazilian ! I bet you are a brazilian. Arent you ?

    Why ? simply because 35 billion gallons at 54 cents doesnt equal to US$ 1.89 billion…..BUT 18,9 billion !!!!!!!

    But in Brazil a number is a just number, no one really cares since no one checks anyway, and only few know what they are talking about !!!!!!

    Enjoy YOUR wrong basic maths thus your wrong conclusion !!!!!


  • yankssuk

    simple…take the yanks money but don’t ship ethanol to them…..what r they goin to do …………..invade? they’d get their asses kicked in the jungle (again)

  • alltheway

    “To meet these objectives, Brazil has to go from the four billion gallons of ethanol it currently exports to 35 billion gallons in 2017. It would have to build 77 ethanol plants before 2012 – some experts have calculated the number needed at closer to 100 – with an investment of US$ 2.5 billion. Much of the capital would come from the United States”.

    “To the degree in which the makers of ethanol have difficulties entering the U.S. market – they currently have to pay a 54-cent tax per gallon”

    SOOO,,, 35 bilion gallons at $.54 cents a gallon tarriff equals Brasil sending the US- $1.89 BILLION in tarrifs to be able to sell the ethanol, the US gets the reduced pollution and the gift of the $1.89 Billion $ ..perhaps the Middle East would have paid you a bit more to not sell it so they can continue to sell their petro, so all this equals EACH american getting a $6.00 gift from Brasil

  • alltheway

    good job Brasil, you grow, develop, ship the ethanol and get to pay the US $.50 cents tarrif to beg them to buy it, Great negotiations, what’s next ? beg and pay someone to take away the sand on the beaches ?

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

The Best of Times to Be a Banker in Brazil

Banks enjoyed "exceptional profitability" in 2005. This is the opinion expressed by Carlos Alberto ...

Brazil’s Right to Information Bill Still Very Imperfect, Says Article 19

International freedom of press organization Article 19 has published its analysis on the long-awaited ...

Mercosur: Contesting Uruguay Brazil Says Putting Pressure Is Not Country’s Style

Brazil’s Special Presidential Adviser for International Affairs, Marco Aurélio Garcia, defended the decision to ...

New World Sonority

Organized over the Internet, gringo sambistas from 19 countries invaded the Sambadrome in Rio ...

Brazil’s Emissary of Samba

Samba brings instantaneous images of Rio’s world-famous Carnaval, of fabulously decorated floats, enormous drum ...

Brazil’s High Tech Exports Grow 32% Led by Communications and IT

Brazilian exports of high technology products were the ones that increased the most last ...

Designer of Brazil’s Capital Gets a Gift for his 99th Birthday: a New Bride

When the architect who dreamed BrasÀ­lia fell down in his Rio apartment’s living room ...

In Brazil’s Favelas Caveirí£o Took Place of Bogeyman

Since 2005, social movements, NGOs, community residents, families of the victims of police violence ...

Tasting Noel

There has been a revival of Noel Rosa’s life and work. But who is ...