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2007 -
March 2007
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Written by Ian Williams
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Wednesday, 07 March 2007 19:57 |
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President Bush begins his tour of Latin America this week, hitting Brazil on March 9, in his attempt to woo America's backyard away from the seductions of Hugo Chavez. In an iconic display of content-free concern, Bush wants to engage Lula, the Brazilian president, in a show of cooperation over biofuels, in which Brazil is world leader - while keeping the stuff out of the USA.
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Mr Williams
This is truly rich, coming from a UK paper.
The US, in fact, imports sugar from the Caribbean and Latin America, at higher than market prices. In contrast, the EU dumps very heavily subsidized sugar on the world market, making it difficult for the Caribbean and Latin American countries to compete
from Oxfam
"Subsidised European exports have led to lower prices on the world market, and reduced export opportunities for other exporters. Oxfam has estimated that EU sugar export dumping translated into foreign exchange losses in the region of $494m for Brazil, $151m for Thailand, and $60m each for South Africa and India in 2002.1"
re
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The American companies concerned are fighting any attempt to reduce or remove the 54 cents a gallon ethanol tariff. Their spokesman told Businessweek that the tariff offsets the 51 cents a gallon tax credit for biofuels - making it fairly plain that the purpose of the tax credit was not to encourage better use of renewables but to boost the bottom line of Archer Daniels Midland and their colleagues."
And what is the UK and EU's tariff on Brazilian ethanol? As far as I can tell, it's around 87 cents a gallon, although I've seen different figures online.
http://www.sweden.gov.se/sb/d/8654/a/77042
While ADM will of course make money from this, so are US farmers who are now making a lot more money from their corn production.
Meanwhile, the EU is proposing binding regulations mandating 10 of all fuel be biofuels. Who is going to benefit from that?