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Lula tour pushes Brazil biofuels Lula tour pushes Brazil biofuels
(about 9 hours later)
Brazilian President Luiz Inacio Lula da Silva is in Mexico at the start of a tour to secure biofuel agreements in Latin America and the Caribbean. Brazilian President Luiz Inacio Lula da Silva has signed agreements with his Mexican counterpart, Felipe Calderon, on alternative fuels.
He was due to sign an accord with his Mexican counterpart, Felipe Calderon, to provide Mexico with technical assistance in ethanol production. These focus on sharing technology for the production of biofuels such as ethanol. Brazil is the world's leading producer of ethanol from sugar cane.
Brazil is the world's leading producer of ethanol from sugar cane. President Lula's regional tour is intended to promote biofuels.
The Brazilian leader also urged Mexico to forge closer links with the South American trading bloc, Mercosur.
President Lula has been actively promoting ethanol as an eco-friendly alternative to fossil fuels.President Lula has been actively promoting ethanol as an eco-friendly alternative to fossil fuels.
This has put him at odds with Venezuela, where President Hugo Chavez has argued biofuels use up valuable agricultural land and increase food prices. He hopes that Brazil can challenge the United States as the main supplier of bio-fuels to countries in Central America and the Caribbean.
This policy puts Brazil at odds with Venezuela, where President Hugo Chavez has argued biofuels use up valuable agricultural land and increase food prices.
Venezuela has been using its large oil and gas reserves as a foreign policy tool.Venezuela has been using its large oil and gas reserves as a foreign policy tool.
While President Lula embarks on his tour, Mr Chavez has gone to Argentina, Ecuador and Bolivia to discuss energy issues.While President Lula embarks on his tour, Mr Chavez has gone to Argentina, Ecuador and Bolivia to discuss energy issues.
Political ties On Monday, President Chavez held talks with his Argentine counterpart, Nestor Kirchner, in Buenos Aires to finalise a $1bn loan in return for Argentine government bonds.
Deforestation fears
The talks between President Lula and President Calderon bring together the leaders of Latin America's two biggest economies.The talks between President Lula and President Calderon bring together the leaders of Latin America's two biggest economies.
Energy and trade were set to dominate their talks. Brazil has been developing its biofuel technology for years
BBC Brasil's Denize Bacoccina reports from Mexico City that the visit is also likely to strengthen political relations which have improved substantially since Mr Calderon took office in Mexico last December. The two men also signed a series of agreements covering justice and immigration policy, as well as energy.
Ahead of his trip, the Brazilian president said there were ample opportunities for co-operation with Mexico "in technological development for deep-water oil and gas exploration and production". President Calderon assured his Brazilian visitor that Mexico's "heart is in Latin America".
He said he also believed that Mexico would join "a campaign to create a market for clean, cheap and renewable fuels".
Mexico has expressed interest in learning more about Brazilian technology to produce ethanol from sugar cane.
Fossil fuels
From Mexico, President Lula travels on to Honduras, Nicaragua, Jamaica and Panama, where talks are also set to focus on biofuel development.From Mexico, President Lula travels on to Honduras, Nicaragua, Jamaica and Panama, where talks are also set to focus on biofuel development.
They all, except Mexico, import oil and President Lula has said they could save a lot of money by switching to biofuels.They all, except Mexico, import oil and President Lula has said they could save a lot of money by switching to biofuels.
But convincing them to forget about fossil fuels will not be easy, says the BBC's Latin America analyst, Martin Murphy.But convincing them to forget about fossil fuels will not be easy, says the BBC's Latin America analyst, Martin Murphy.
Ethanol production requires large-scale plantations of sugarcane or, as is the case in the United States, corn.Ethanol production requires large-scale plantations of sugarcane or, as is the case in the United States, corn.
Many environmental groups claim that the growing production of sugar cane is exacerbating deforestation.Many environmental groups claim that the growing production of sugar cane is exacerbating deforestation.