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Last week Friends of the Earth Europe and Mozambican NGO Justiça Ambiental [Environmental Justice, pt] furiously denounced an accord between Brazil, the European Union and Mozambique to promote biofuels production in Mozambique.
The agreement would increase technical cooperation to promote biofuel production in Mozambique. Currently Mozambican sugarcane ethanol imports to the EU would be subject to very low tariffs in comparison with Brazilian ethanol, which the EU will continue to tax.
Brazilian companies would profit from increased emphasis on the sector and assistance, as some are looking to expand their operations in Mozambique. According to Reporter Brasil [pt] at the end of last year, at least two major Brazilian companies had land use agreements to expand sugarcane production in Mozambique, and were looking for financing to actually produce ethanol in the country.