The United States on Monday announced a trade deal with Brazil to recognize certain distilled spirits, bourbon and Tennessee whiskeys in the US and cachaca in Brazil, as "distinctive products."
The drinks deal came on the sidelines of Brazilian President Dilma Rousseff's visit to the White House Monday for talks aimed at strengthening ties between the Americas's two largest economies.
US Trade Representative Ron Kirk and Brazil's foreign trade minister, Fernando Pimentel, signed an exchange of letters launching the process, Kirk's office said in a statement.
"This exchange of letters represents a very positive development for both of our industries, and reflects our governments' commitment to stronger bilateral trade ties," Kirk said in the statement.
The designation means that only Brazilian-made cachaca can be marketed as such in the United States and only products made in the United States may be sold as bourbon or Tennessee whiskey.
Bourbon is an American-born whiskey, usually made with corn and aged in oak barrels. Tennessee whiskey is bourbon produced in the southern state of Tennessee.
Cachaca has been gaining popularity in the US as a crucial ingredient for the caipirinha -- Brazil's national cocktail.
Last year, Brazil was the United States's eighth-largest goods trading partner, with a total $74 billion in goods trade. The US had a $12 billion goods trade surplus with Brazil.
The US proposal requires approval by the Treasury Department's Alcohol and Tobacco Tax and Trade Bureau.
Source: AFP Global Edition
