“The initiatives carried out by the Brazilian Mercantile & Futures Exchange are on the right track to creating a true ethanol market”. The statement was made by Jeb Bush, ex-governor of Florida, who visited the Exchange on Monday, April 16th. Bush, accompanied by Brazil’s former minister of Agriculture, Roberto Rodrigues, visited the trading floor with BM&F’s vice-Chairman, Renato Diniz Junqueira; and CEO, Edemir Pinto. For Bush, the phasing out of the U.S. tariffs will also play an important role in the development of an ethanol market, as well as the possibility of a consensus on carbon credits. During the visit, BM&F presented its new ethanol futures contract, currently pending approval by CVM (Brazilian Securities and Exchange Commission), with changes that will allow a greater participation of nonresident investors.
According to Bush, Brazil is the country with the largest capacity to expand ethanol production, without distorting food prices. Florida’s former governor also mentioned other Latin American countries with similar production capacities: Peru, Colombia, Guatemala, and Dominican Republic. “Brazil will lead the way”, he asserted.
President George Bush’s brother highlighted the need to further educate the American public on the importance of protecting the environment. “New investors will emerge from this type of initiative”, he said. Bush believes that the production of ethanol can be doubled within the next five years and that the U.S. will probably increase its imports, most likely from Brazil.
Jeb Bush is one of the founders of the Interamerican Ethanol Commission and a supporter for the increase of Brazilian ethanol import by the U.S., defending a close collaboration policy between the US and Brazil in the ethanol issue.
