SAO PAULO, Brazil --- President Bush and Brazilian President Luiz Inacio Lula da Silva announced March 9 a partnership to promote the use of biofuels, particularly ethanol. Brazil and the U.S. signed an agreement to share biofuel technology and promote its use by other nations in the region. Though Lula has been critical of Bush's foreign policy, the Brazilian leader suggested the two leaders can work together on issues of common interest, according to a report in the Los Angeles Times. Brazil is the world's biggest ethanol producer. The country's ethanol is produced primarily from sugar cane. In contrast, ethanol produced in the U.S. is made mainly from corn. A point of contention between the two nations, however, remains: a U.S. tariff of 54 cents a gallon on Brazil's sugar ethanol. The tariff is set to expire in 2009.

Originally posted on Fleet Financials