A win for Lula

There’s been a potentially big biofuels win for Brazil’s President Lula, reported on Biopact.

The Swedish government has signed a biofuel cooperation agreement with Brazil and will remove its heavy import tax on ethanol produced in the South. The move is seen as a way to push EU member states to do the same. Both governments will also work together to help African countries become biofuel producers who can supply global markets. Sweden is thus creating the kernel of a genuine ‘biopact’

If this pressure works, and its easy to see why Sweden could make such a deal — minimal sugar beet and probably about enough grain to feed itself. What is important here is the pressure that the Sweeds will bring to the rest of the European Union. I don’t think that it will be enough on its own to bring the trade bloc’s tariff walls tumbling down. I think we can expect pretty stiff opositon from the French, British and German farming lobbies as well as the sugar resellers and producers. But once again the Sweeds with with an ethical foreign policy that has the potential to help some of the poorest farmers in the world raise their standards of living.

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