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Cablegate: Media Reaction: Western Hemisphere: President Bush In

VZCZCXYZ0019
OO RUEHWEB

DE RUEHSO #0199 0741110
ZNR UUUUU ZZH
O 151110Z MAR 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6569
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7685
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7895
RUCPDOC/USDOC WASHDC 2742

UNCLAS SAO PAULO 000199

SIPDIS

SIPDIS

STATE INR/R/MR; IIP/R/MR; WHA/PD

DEPT PASS USTR

USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: MEDIA REACTION: WESTERN HEMISPHERE: PRESIDENT BUSH IN
BRAZIL, ETHANOL PARTNERSHIP; SAO PAULO


"Ethanol and the Brazil-US relationship"

Former Brazilian Ambassador in Washington Roberto Abdenur commented
in business-oriented Valor Economico: "The Brazil-US understanding
about biofuels requires a more comprehensive analysis of what it
means for the evolution of bilateral relations. If it is used well
by Brazil, the initiative may help to provide more dynamism and
diversification to our sales to the US, which have been stagnant for
a decade at just 1.4% of the US market.... The understanding is part
of a previously launched more comprehensive Brazilian initiative -
the Biofuels Forum, which, in addition to the two nations, includes
India, China, South Africa and the European Union in an effort to
globalize ethanol and enlarge the use of biodiesel. The new
partnership shows a little noticed reality in the relations between
Brazil and the US: the relationship, which was formerly highly
asymmetric and 'unilateral' (in the sense that the US was the only
supplier of investment, know how and technology), has become
increasingly more balanced and is gaining more mutuality.... The
memorandum of understanding on biofuels creates, for the first time,
a new dimension in the relations between the two nations: the joint
work towards development and to reduce poverty in Latin America, the
Caribbean, Africa and Asia.... Some observers' disappointment with
the fact that President Bush has not committed himself to eliminate
or reduce tariffs on ethanol imported from Brazil is misplaced. Bush
simply could not make concessions in a matter where the decision
power belongs to the Congress.... Barriers like those affecting our
ethanol and orange juice exports will naturally fall: they will be
removed as a result of developments in the US economy, in Brazil and
in the world."
McMullen

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