The major difference between cachaça and rum is that rum is usually made from molasses, a by-product from refineries that boil the cane juice to extract as much sugar crystal as possible, while cachaça is made from fresh sugarcane juice that is fermented and distilled.[13] As some rums are also made by this process, cachaça is also known as Brazilian rum.[7]
In the United States, cachaça is recognized as a type of rum and distinctive Brazilian product after an agreement was signed with Brazil, in which Ron Kirk and Brazil's Fernando Pimentel were involved, which is likely to drop the usage of the expression Brazilian rum