By Raymond Colitt

BRASILIA, Feb 28 (Reuters) - Brazil will ask the United States to cut import tariffs on ethanol during next week's visit by President George W. Bush and to help create a global market for the biofuel, a senior official said on Wednesday.

Bush is expected to propose Brazilian-U.S. co-operation in the regional production and trade of ethanol as part of a new policy initiative in Latin America during his six-day visit to the region next week.

"We are interested in forming a global ethanol market; for that we need joint standards ... that's good for us and for them," Foreign Minister Celso Amorim told a news conference.

The United States and Brazil are the world's two largest ethanol producers and cooperation on the fuel is expected to be the focus of Bush's meeting with President Luiz Inacio Lula da Silva on March 9 in Sao Paulo.

Amorim said both countries should work toward common standards to guide an international ethanol market "before each (player) invents rules that could be used as an excuse for protectionism".

But Brazil will insist the United States lower its tariffs on ethanol imports, currently at $0.54 a gallon, Amorim added.

"Obviously we have our own demands," he said. "I'm not sure they will be solved all at once but they will be on the table."

Brazil has occasionally acted as a regional intermediary for Washington with leaders such as Venezuela's Hugo Chavez and Bolivia's Evo Morales who oppose the Bush administration.

Amorim said, however, that Brazil did not want to act as an intermediary for anybody.

"We want the United States to have understanding for the problems, diversity, plurality and economic interests of South America."

Washington appeared to be changing its approach to Latin America, Amorim added.

"I have the impression there is increased interest. We can help translate that (interest) into something positive, in the sense of cooperation, not intervention in the old style."

Brazil's chief diplomat said Bush and Lula would discuss joint investments in ethanol projects throughout the region and particularly in Haiti.

"We want U.S. companies to invest in South America. We have no prejudice," Amorim said.

The former Brazilian ambassador to Washington told a congressional hearing on Tuesday that Lula's foreign policy was anti-American.

Amorim said he would also meet with U.S. Trade Representative Susan Schwab on March 10 in Sao Paulo to discuss the revived Doha round of global trade talks.

AlertNet news is provided by