BTB Exclusive - Cagle's trip to Brazil

Bobby L. Hickman

May 12, 2008

Expanding Georgia's energy trading business with Brazil – particularly in the biofuels arena -- was the focus of Lt. Gov. Casey Cagle's trade mission to Brazil last week.

Cagle said the delegation was particularly interested in teaming up with Brazil on biofuels such as cellulosic ethanol. Through a combination of large oil fields and biofuels produced from locally grown crops, Cagle said, Brazil has been able "to achieve the coveted goal of being completely free of importing fuel from other nations – true energy independence." He said Georgia leaders hope to learn techniques and form partnerships that will help them continuing growing Georgia's expanding biofuels industry.

Cagle's trip follows two similar missions in 2007 that also focused on Brazil's ethanol industry. During the trip, which began on May 3 and ended Thursday, Cagle and the mission delegates visited Sao Paulo, Brasilia and Rio de Janeiro. While ethanol was the main topic of discuss, the Georgia delegation also sought other areas to enhance trade.

"The massive, emerging economies of such nations as Brazil, Russia, India and China represent the world markets of the future," Cagle said. "As we seek to bring high paying jobs to Georgia, engaging the government and business structures of nations like Brazil represents a critical challenge. This is where growth will take place, and Georgia cannot afford to be left behind."

Cagle noted Georgia is an attractive trading partner for the Brazilian economy, which is generating billions in new spending. "Hartsfield-Jackson airport, the Georgia ports, and the presence of so many corporate headquarters make Georgia an ideal gateway for the world economy to connect to America," he said.

Earlier this year, Brazil announced it will open a new Brazil consulate general in Atlanta that will be one of the largest in Georgia. Cagle said the consulate "will open a new gateway for Georgia businesses seeking to sell goods to one of the world's largest and fastest growing economies." The state has had an office in San Paulo since 2004.

Brazil ranks number 11 among Georgia's export destinations. In 2007 Georgia exports totaled almost $495 million, a 15% increase over the prior year. Also that year, Georgia imported $915.5 million from Brazil through the Savannah Customs District, an annual increase of 18.5%. Some 21,500 Brazilians live in Georgia, primarily in the metro Atlanta area.