In a world increasingly more aware of the need to develop renewable energy sources, biofuels, particularly ethanol, stand out, and Brazil plays a strategic and essential role in this scenario. The world’s second largest producer and main holder of ethanol from sugarcane production technology, the country experiences a decisive moment, with promising perspectives for the production sector, mainly as related to exports.

Brazilian expertise in the production of ethanol from sugarcane is developing under unique conditions of abundant natural resources, technology and innovation, which has also resulted in the development of flex-fuel cars, another great achievement to be shared with the world. Having reached technological excellence, we are now engaged in placing the fuel on the agenda of world trade, as a clean, renewable and sustainable alternative.

The strategy for transforming ethanol to a commodity, and the consequent expansion of the product’s exports, should be viewed as highly powerful and invigorating. In this regard, Brazil has done its homework, bringing about social development to production regions, showing its technology and companies in a variety of countries, while attracting investments.

Exporting causes companies to seek excellence and awakens the need for long-term planning on the part of all parties involved in the production chain, contributing to the industry’s development.

In fulfilling its mission of promoting exports and attracting foreign investments to Brazil, Apex-Brasil (the Brazilian Export and Investment Promotion Agency) develops industry-related projects in partnership with Unica (the Sugarcane Industry Association) and with Apla (Local Alcohol Production Arrangement).

By means of these projects, which currently involve 97 companies, Apex-Brasil promotes international sales of machinery and equipment and of Brazilian technology in the sugarcane-based energy industry, along with the image of Brazilian ethanol from sugarcane as clean and renewable energy, fostering the creation of an international market for the product.

By means of an innovative trade promotion platform, Apex-Brasil is also present at Indy Car Racing events to promote the use of ethanol from sugarcane as fuel for all competing cars in the 2009, 2010 and 2011 seasons.

The world has responded positively to these initiatives, with increasing awareness of the role of ethanol in the world’s energy matrix, with a growing number of tropical climate countries interested in producing ethanol based on the technology developed in Brazil.

Seeking to complement their energy sources, innumerous countries have set up a regulatory framework for adding ethanol to gasoline, which is expected to have a major impact on demand in coming years. Another positive sign comes from the United States, one of the world’s big ethanol consumers, where action by Congress signals an expressive reduction on the import tariff in the medium term.

With a growing and huge domestic market, the Brazilian production sector is developing in the direction of preparing to meet the emerging world demand. Our industry is becoming increasingly more competitive, and the role of government is to act as inducer and fosterer in opening up new frontiers. The government and private initiative are already working together, and we need to do so at an ever increasing pace.

An important step in this direction was taken recently with the increased involvement of ANP (the Brazilian petroleum, natural gas and biofuel agency), in setting up a regulatory framework for ethanol, which is beginning to become an energy commodity rather than just an agricultural product. The implications are highly auspicious, because ethanol is ceasing to be viewed as an alternative, to be acknowledged as something that is here to stay.

Apex-Brasil supports more than 13,000 companies in 80 sectors of the Brazilian economy, which export to over 200 markets, and, since its foundation, developed from a technical standpoint, taking into consideration different business cultures around the world, while having adapted and developed innovative strategies for our positioning in the international market.

We are engaged in strengthening our initiatives in the main global markets, in which we are already active, contributing to consolidate the brand Brazil and to continue bringing to the world what best Brazil has to offer, in line with the foreign trade policy of the government of president Dilma Rousseff, as implemented by the Ministry of Development, Industry and Foreign Trade.