In world trade this week, Brazilian President Luiz Inacio Lula da Silva met with Swedish Prime Minister Fredrik Reinfeldtin Stockholm on a two day state visit. Regarding trade issues, Sweden has decided to abolish a tax on ethanol, which it currently purchases from Brazil.

We have signed an agreement regarding science and cooperation concerning bioenergy,” Sweden’s PM told a press conference. The ethanol tax that was first introduced in January 2006 and will be eliminated on January 1^st, 2009.

Brazil is the world’s largest exporter of biofuel ethanol.