Venezuela to continue importing Brazil ethanol

18 April 2007 00:39  [Source: ICIS news]

HOUSTON (ICIS news)--Venezuela President Hugo Chavez said on Tuesday his country will continue to import ethanol from Brazil despite his opposition to the US-Brazil biofuels partnership.

Chavez called for an energy pact for South America that includes oil, gas and biofuels at the close of a summit on Margarita Island in the Caribbean.

The summit included leaders of 12 South American nations, including Brazilian President Luiz Inacio Lula da Silva.

Chavez said Venezuela will import ethanol from Brazil “but without tariffs” in a clear reference to the 54-cent/gal tariff levied by the US on Brazilian ethanol.

The Venezuelan leader is a fierce critic of a plan by the US to replace 20% of its gasoline consumption with alternative fuels.

Chavez claims increased US ethanol production will impact global food supply.

He has vowed to undermine a plan by the US and Brazil to develop ethanol production in Latin America, claiming the US is using biofuels as an excuse to divide the region.

By: William Lemos
+1 713 525 2653

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