Biofuels and the Global Food Crisis - Who Is to Blame?

 U.S.-Brazil tension, a relatively recent development, resurfaced during the UN World Food Summit in Rome on June 3-5, encouraging the booming Brazilian sugar-based ethanol market to increase its new development projects. This rift represents a de facto counter move against the far less-efficient U.S. model predicated on corn-based ethanol production. Following the summit, Brazilian officials began a weeklong tour, stopping in Morocco, Algeria and Tunisia, during which they discussed a set of commercial agreements that will boost multilateral cooperation with several African countries. The trade agreements, projected to begin in 2009, include an expansion in ethanol investment, urbanism, air and sea transport, and cooperation in professional training between the two regions.

In a statement that appeared in Brazzil magazine, Brazilian Secretary of Development Ivan Ramalho remarked that he hoped the meetings would enhance trade with other countries in order to diminish Brazil's over-reliance on the U.S. market. Brazil's recent trade initiatives with other developing countries have emerged largely due to the reluctance of some developed nations to lower trade subsidies. This impedes Brazil's ability to trade, adding significantly to the current debate over rising food prices. In an official statement released after the first set of meetings, Michel Alaby, Secretary General of the Arab Brazilian Chamber of Commerce, called for solidarity among countries suffering from rising food prices and demanded that developed countries, especially the U.S. and Europe, eliminate international trade barriers in the agricultural sector (Brazzil Magazine). With the emerging agreements, Brazilian officials hope to call attention to the U.S.' highly inefficient corn-based ethanol production at the height of a snowballing food crisis. The government aspires to be a strong actor in the midst of the food crisis and plans to show the rest of the world the benefits of Brazil's efficient sugar ethanol market, while it professes to be executing projects stalling the destruction of the Amazon rainforest.

http://www.coha.org/2008/07/biofuels-and-the-global-food-crisis-who-is-to-blame/

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