U.S.-BRAZIL SIGN MEMORANDUM OF UNDERSTANDING ON BIOFUELS

UNCLAS SECTION 01 OF 02 BRASILIA 000433 SIPDIS SIPDIS STATE TO WHA/BSC FOR BPOPP STATE TO WHA/EPSC FOR FCORNEILLE STATE TO EB/ESC FOR JIZZO STATE TO G FOR PBATES STATE TO OES/EGC FOR DSNELSON STATE TO OES/PCI FOR LSPERLING STATE TO OES/EGC FOR GTHOMPSON STATE PLEASE PASS TO EPA FOR CHILL-MACON STATE PLEASE PASS TO NIST MNAVARRO E.O. 12958: N/A TAGS: TRGY SENV KSCA TPHY TBIO US BR SUBJECT: U.S.-BRAZIL SIGN MEMORANDUM OF UNDERSTANDING ON BIOFUELS Secretary Rice and Brazilian Foreign Minister Celso Amorim signed a SIPDIS Memorandum of Understanding on March 9, 2007, in Sao Paulo, Brazil, to advance cooperation on biofuels. Text follows: "Memorandum of Understanding Between the United States and Brazil to Advance Cooperation on Biofuels The Government of the United States of America and the Government of the Federative Republic of Brazil (henceforth referred to as the "Participants"), Recognizing the common interests shared by the Participants toward the development of affordable, clean, and sustainable energy sources; Considering the strategic importance of biofuels to be a transformative force in the region to diversify energy supplies, bolster economic growth, advance social agendas, and improve the environment. Aware of the benefits of forging a U.S.-Brazil partnership to leverage our collective public and private sector resources toward the advancement of biofuels and related technologies; Taking into account the existing mechanisms and ongoing cooperation in the fields of energy, agriculture, environment, and science and technology regarding biofuels; Bearing in mind that this Memorandum is intended to provide a general framework and express the cooperative intent of the Governments; Noting that issues relating to domestic trade or tariffs should be raised in other multilateral, regional or bilateral fora. Hereby express their intention to cooperate on the development and deployment of biofuels through a three-pronged approach (bilateral, third countries, and global): ¶I. Bilateral: The Participants intend to advance the research and development of next generation biofuels technology leveraging - wherever possible - work being done in the framework of the Brazil-U.S. Commercial Dialogue (2006),the Consultative Committee on Agriculture (2003),the Consultative Group on Energy (2003),the U.S./Brazil Common Agenda for the Environment (1995),and the Joint Commission on Cooperation in Science and Technology (1984) - amended and extended by the Protocol signed on March 21, 1994. II. Third Countries: The Participants intend to work jointly to bring the benefits of biofuels to select third countries through feasibility studies and technical assistance aimed at stimulating private sector investment in biofuels. The Participants intend to begin work in Central America and the Caribbean to encourage local production and consumption of biofuels, with a view to continue joint work in key regions across the globe. III. Global: The Participants desire to expand the biofuels marketplace through cooperation on the establishment of uniform standards and codes. To achieve this goal, the Participants intend to cooperate through the International Biofuels Forum (IBF), leveraging existing work being carried out between the U.S. National Institute of Standards and Technology (NIST) and the National Institute of Metrology, Standards and Industrial Quality of Brazil (INMETRO) and coordinating with existing and complementary international fora; The Participants intend to establish a Steering Group to oversee the work being carried out under this MOU so that proper coordination is maintained across each of the three areas of cooperation. The Government of the United States appoints the Under Secretary of Economic, Energy, and Agricultural Affairs, U.S. Department of State, as its primary representative for implementation of this MOU; The Government of Brazil appoints the Under Secretary General for Political Affairs, Ministry of External Relations as its primary representative for implementation of this MOU; BRASILIA 00000433 002 OF 002 Each representative, or their designees, are responsible to provide information regarding actions taken by the Government that designated him or her. This Memorandum is to take effect on the date of signature. Signed at Sao Paulo, in the English and Portuguese languages, on the 9th day of March, 2007." CHICOLA