U.S. Treasury Says ‘Cheers’ to Brazilian Cachaça

Feb 26, 2013

It’s time for a little word association game.  Tennessee is to Bourbon and Whiskey as Brazil is to ­­­­­­­­­____________?  Don't know the answer?  Well, the U.S. Treasury can help!  After a year of consideration, the U.S. officially recognized Cachaça as a distinctive product of Brazil.

The Brazil-U.S. Business Council welcomes – in great spirits, we might add – the U.S. Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) final rule amending its regulations regarding the standards of identity for distilled spirits to officially recognize “Cachaça,” a type of rum.

This recognition by the administration, accompanied by Brazil’s expected recognition of Bourbon and Tennessee Whiskey as distinctive products of the U.S. as agreed upon in April 2012, will not only allow for greater trade in spirits between the United States and Brazil, but will also remove a decade-long trade irritant between the two countries.

Last year’s agreement and yesterday’s proposed rule speak to the dedication of the two countries to deepen their trade relations—key for creating jobs, growth, and innovation.

We have long advocated for this recognition. In 2011, for instance, the BUSBC sent letters to the TTB and the Office of the United States Trade Representative emphasizing the importance of this step, “as Cachaça is an integral part of Brazilian culture, history, and image abroad. In addition, the Government of Brazil seems ready to reciprocate by recognizing the U.S.-made spirits, Tennessee Whiskey and Bourbon as distinct products of the United States.”

The BUSBC looks forward to Brazil’s recognition of Tennessee Whiskey and Bourbon, and to greater trade and cooperation between the two makers of such highly appreciated and distinctive spirits, the United States and Brazil.

So, raise your glass and “saúde à Cachaça!” … or cheers to Cachaça!

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