To ask the Secretary of State for Trade and Industry if he will take steps to improve the relationship between biofuels producers in (a) the UK and the North East of England and (b) Brazil (i) to stimulate trade, (ii) to encourage innovation in the industry and (iii) to enhance competitive advantage for the two countries. (145021)

Support for establishing partnerships in investment and trade in renewable energies, particularly ethanol, is one of the recommendations of the UK-Brazil Joint Economic and Trade Committee (JETCO). This clearly shows the importance we place on biofuels, and echoes industry’s appetite for bilateral projects. UK banks, consultancy and advisory services companies are active and already doing business with Brazilian partners.

HMG maintains regular dialogue with Brazil, the European Commission, the International Energy Agency and others on ethanol production and trade. Regular discussions also take place between Commission officials about a possible EU-Mercosur trade agreement with regards to bioethanol.

There have been several recent events where Brazilian expertise has been presented to a UK audience to stimulate trade, investment and co-operation in biofuels, including the “Brazil: New Business Opportunities” event on 25 June 2007, organised by the Brazilian embassy in conjunction with UK Trade and Investment (UKTI). This JETCO event will see a specific ethanol presentation by the Brazilian Mercantile and Futures Exchange (BM&F), followed by a biofuels workshop attended by the Brazilian Piracicaba Ethanol Cluster and the Brazilian Sugar Cane Industry Union. Over 80 UK companies are scheduled to attend.

There are no specific Government-led international initiatives specifically focused on biofuels for the NE, but UKTI NE region is running a trade mission to Brazil in February 2008 in which biofuels companies can participate.