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The Brazil-US Ethanol Alliance Aims to End Mercosur and Chávez Dreams PDF Print E-mail
2007 - March 2007
Written by Laura Carlsen   
Saturday, 10 March 2007 18:35

Venezuelan President Hugo Chavez President George W. Bush has embarked on a five-nation tour of Latin America - the most ambitious of his presidency - in an attempt to reassert U.S. leadership in a region where open hostility to his government and its foreign and economic policies is the norm rather than the exception.

The U.S. president hopes that espousing a new commitment to "social justice" will undermine Venezuela's crusade for Latin American and Caribbean unity based on a rejection of U.S. dominance and the free trade model.

Bush's trip seeks to build a new coalition of the willing, in the face of a coalescing group of nations that has declared itself unwilling to continue to follow the economic and political dictums of Washington.

In his speech last week, Bush described the countries on his itinerary - Brazil, Uruguay, Colombia, Guatemala, and Mexico - as countries that have made "the right choices," as opposed to the tacit accusation that many of the rest of them are making the wrong choices.

The nations Bush is visiting are not well-positioned to receive a public figure so widely repudiated by their populations. Lula, engaged in a political balancing act between social programs for the poor and economic orthodoxy for the rich, risks taking a serious fall from being so closely related to U.S. interests.

Colombia is embroiled in a human rights scandal that is exposing the government's own connections to paramilitary operations that have been at least indirectly supported by U.S. aid to the country's armed forces.

Mexico's President Calderón will get a photo op with the president, praise for his ongoing drug crackdowns, and a commitment to immigration policy reform. But the presidential summit will take place outside Mexico City, where grassroots mobilizations against electoral fraud and anti-Bush demonstrations are capable of drawing tens of thousands of people.

So why risk a major tour now? Although they emphasize the social goals and deny that the tour is ideologically motivated, government officials have admitted that the president's trip seeks to contain the growing influence of Hugo Chávez.

The trip indicates rising U.S. concern about a consolidating left-center alliance in Latin America. The State Department has warned of a populist threat - including Venezuela, Bolivia, and Ecuador, with Argentina thrown in for good measure - and Secretary of State Condoleezza Rice says the U.S. government is committed to "ensuring that the peoples of the Americas are not abandoned to demagogues and authoritarians" - both frequent accusations against the Chávez government.

But as Chávez forges relationships built on infrastructure construction, financing, oil, and preferential trade, Bush is offering little to back up his bid to be the champion of social justice in the region. The 2007 aid budget for Latin America is down from past years and conditionality is way up.

Ironically, many of the specific measures to be highlighted during the tour look like a weak copy of the kind of measures Cuba and Venezuela have been carrying out for years, including offering medical services to the poor, but in this case through military teams and a floating clinic located on a U.S. Navy ship; scholarships to study in the United States; English lessons; and some housing construction.

The rest include a round up of already existing programs and the extension of U.S.-based financial services in the region through loan and mortgage programs. These are not measures that are likely to win over the hearts and minds of Latin America's poor.

They key to the campaign, though, lies in the consolidation of the relationship with Brazil. Brazil is Latin America's powerhouse, and considered one of the four emerging economies that will rise to be major players within the next decades.

The ethanol alliance seeks to consolidate a new power line in Latin America that runs directly between the United States and Brazil, with the dynamic force being the transnational corporations with interests in both countries.

If this alliance is consolidated it will erode the Bolivarian plan to integrate the continent with a model of state-regulated economies and Venezuelan oil. It would also undermine efforts to strengthen the Southern Common Market.

In the deal, Brazil gains capital to develop ethanol-producing technologies within its own borders and export them to Central America and Caribbean nations. In addition to investment and credits, the São Paulo industrialists are assured policies to extend agribusiness into the Amazon and other regions now populated by small farmers.

The United States gains greater independence from Middle East oil by importing more of the cheap Brazilian ethanol. It also begins to redraw the map of energy integration in Latin America based on Brazilian ethanol rather than Venezuelan oil and Bolivian gas, thus neutralizing the power of nations it considers uncooperative.

Cargill, one of the largest owners and operators of ethanol production in Brazil, and other agribusiness corporations, expands in the south while continuing to protect its corn interests in the north by maintaining U.S. import tariffs on ethanol. As mono-cropping for biofuels takes over huge tracts of land, small food farmers who have always resisted international market control of land and resources will become a species in danger of extinction.

None of these changes are really in the interests of Latin America's poor or the U.S. public. Setting aside Chavez's anti-American hype, Latin American countries helping each other out is not necessarily contrary to U.S. interests, if these are redefined in terms of stable, long-term relationships with its southern neighbors rather than by the destructive trade and security agendas that now dominate.

The attempt to isolate nations that are seeking more equitable forms of development - including Bolivia, Argentina, and Ecuador - may help forge a coalition based on the interests of the powerful but will exacerbate Latin America's problems and further distance the United States from its neighbors.

Our foreign policy should place more value on principles - democracy, equitable development, well-being - rather than on ideological control, and it should be based on respect for the myriad forms of development being explored in the region. This is the foreign policy that the people throughout the Western Hemisphere deserve.

Laura Carlsen is director of the IRC Americas Program in Mexico City, where she has worked as a writer and political analyst for the past two decades. The Americas Program is online at http://americas.irc-online.org.



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Comments (26)Add Comment
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written by alltheway, March 11, 2007
Besides the .54 cents a gallon Brasil will pay the US for each gallon they export to the US, note that Jed Bush, the President's brother co-founded the Interamerican Ethanol Commission to promote regional ethanol production and convinced his brother to do the deal.
= another Bush family business ..
written by alltheway, March 11, 2007
first oil, second war, third = ethanol
...
written by conceicao, March 11, 2007
A point that I have not seen made about the 54-cent tariff is that it was obviously set so high as to completely exclude imports from Brasil. The fact that Brasilian producers were still able to
export well over 400 million gallons of sugar-based ethanol to the U.S. last year profitably just shows how distorted and artificial the corn and ethanol markets have become in the U.S. due to the
counter-productive federal mandates. Give Brasilian industry credit for at least shaming Congress into not trying to increase the tariff. This issue is so intriguing because the tariff and its associated
interests so clearly carry within themselves the seeds of their own destruction. And, the halo effect for Brasil within the U.S. for standing as an example of efficient production based on best
practices and free trade is amazing when you consider the notoriously bad press Brasil has always gotten from the U.S. media.
...
written by alltheway, March 11, 2007
It does show the inpotentency of Lula, he couldn't even get a one penny reduction in the tarrif, the news focuses on the expectation that the US will cut pollution and that Brasil will provide the ethanol but not on the fact of the $18 Billion tarrifs to be paid out, that is a lot of reals. Bush was the salesman and Lula was the customerwho wants to pay him to buy his product.. The US gets its fuel and you give awayyour money too. If you were selling something would you expect to pay your customer a fee to buy your product ? the tarrif only benefits the US. Perhaps when Lula is back in the US in a couple weeks he can find something else to gove away and the Brasilians will believe he is doing them good things
...
written by Dana, March 11, 2007
Mr. Lula is a complete betrayer and it doesnt amazes anyone with brains his allying with Mr. Bush. Castro and Chavez and argentinians that were stabbed on the back. Lula is a motherf**ker.
...
written by A brazilian, March 11, 2007
It does show the inpotentency of Lula,


It shows what you would like to believe only. Is this the only thing you know about the visit from Bush?
Chavez
written by Ric, March 12, 2007
I think he brings a needed element to the world stage. Politicians can be so boring. Nikita K. got attention when he banged the table with his shoe. That´s showmanship. Then they wouldn´t let him go to Disneyland, couldn´t guarantee security in Orange County. He was really upset. Had to stay in L.A.

I loved the "enxofre" comment at the U.N., now that´s news. And he seems well groomed and seems to be having a good time, whereas a friend of mine once asked a guy that knew Fidel Castro pretty well, "What´s he Like?" "Well, he stinks." "I know that, but what´s he like?" "No, I mean you can´t get next to him, he smells, B.O." By contrast, Chavez appears to dress well and has a nice haircut. Not a slob.

I know, we´ve got Barney Frank, Waters, Al Gore, they are always good for a laugh or two, but presidents and prime ministers who are good press, not many. There was Lyndon and his speech at the sterile screwworm factory inauguration, but that was before Dallas. Here in Brazil we have Clodovil. Not really a clod and not really vil, but a lot of fun.

Ric
written by A brazilian, March 12, 2007
Your silly attempts of making funny comments are starting to get boring. Why don't you give up? You are definetely not the comedian you think you are.
AS USUAL
written by all american, March 12, 2007
the leftists are bristling over this one... chavez is frothing and has heartburn...che guevarra has not risen from the grave...and fidel is looking at his... the same story continues " more disfunction from the southern continent"...
all american, the redneck
written by A brazilian, March 12, 2007
Are you son of your grandfather? Did your grandfather make a visit to your mommy and then you were born? Yes, that would explain your mental retardation.
...
written by mm, March 12, 2007
Ethanol will work very well combined with water to run Hydrogen Fuel Cells and help get us off our crude oil addiction. Most addicts will never admit that their money goes to crime as well as become the means to undermine stable democracies. Chavez Rojo is just a pimp.
A Brazilian, the Meaness Grows
written by The American Historian, March 12, 2007
Boy, the comments from you have been vile and mean today. I wonder did you get bitch-slapped by some Brazilian transexual this morning?
Dana
written by The American Historian, March 12, 2007
I think on balance Lula is doing a good job for you folks with what he has. I think you should be more understanding.
lula betrays, chavez saves
written by jimmy, March 12, 2007
lula betrays the poor ... with every US attack chavez becomes stronger ... one day america will him into a martyr ... viva venezuela ... freedom for palestine
Abe
written by Ric, March 12, 2007
Mr. Chavez may not like the fact that the minute someone says something positive about him, you react negatively. Bad boy. Down.
Abe
written by Ric, March 12, 2007
It also occurs to me that you don´t seem to have much of a sense of humor anyway. I just can´t picture you yukking it up, except in a Beavis and Butthead sort of way. I hope I´m wrong, as I often am, because you need to lighten up a little bit. I hope this has been helpful and not made things worse.
What a bunch of idiots these brazilians !
written by ch.c., March 13, 2007
ACTUALLY MOST BRAZILIAN ETHANOL PAYS ALMOST NO IMPORT TAX IN THE USA .......CONTRARY TO WHAT YOU BELIEVE !!!!!

Simply because the U.S. law says :
an import tariff of 54 cents per gallon is assessed on imported ethanol, WITH DUTY FREE STATUS on up to 7 percent of the U.S. ethanol market for imports !!!!!!

Time and again Brazilians demonstrate how poorly they are educated with a lack of general knowledge on the subjects they are referring and talking !!!!!!!!!

This said, if Brazilians dont like the import tax in general, why do they charge around 100 % of import tax on foreign cars, foreign tractors and Personal Computers just to name a few ????????????
Simply because you are NOT COMPETITIVE, and to have a still high but lower import tax rate, you want that 60 % of the pre- mentionned products are built in your country to create
jobs in your country.
Quite funny that some identicals car models are sold retail cheaper in the UK than in Brazil, despite the huge gap in income and workers salaries !!!!


Yessssssss brazil is OBSESSED TO NOT IMPORT......AND OBSESSED TO EXPORT AT ANY PRICE, EVEN IF THAT CREATES POVERTY AND SLAVES ALIKE WORKERS IN YOUR PIG IRONS PRODUCTION, COFFEE BEANS AND IN YOUR SUGARCANE FIELDS PRODUCING BOTH SUGAR AND ETHANOL !!!!!!!!

iN MY OPINION foreign cars, trucks and tractors manufacturers should close their plants in Brazil, set them in China, and let you swim for your transportation of peoples and goods !
"all american"
written by Costinha, March 13, 2007
the dudess is ovulating, isn't she?
Brazil needs the US ethanol import tariff until 2009
written by mafagafo, March 13, 2007
to assure enough ethanol stays in Brazil for consumption. That's why nobody is really upset. When BR production ramps up, after 2009/10, even the US will want to reduce the tariff in order to get all the ethanol it needs (in competition for Brazilian ethanol with Japan, EU, etc.).
Lets take out Chavez
written by Paul Oliphant, March 13, 2007
If the Brazilian government really wants to improve the standard of living for its citizens, Brasil should invade and silence Chavez in latin America. Brasil is the biggest country in the region. The time has come to not only improve the standard of living for its people, but also to make a stand in world politics. Invading and taking out the Venezuelan leader Hugo Chavez, would improve the standard of living for all Brazilains but it would also make the world stand up and take notice of Brasil as a world powerhouse. The time is now!
Miss Paula Elephant
written by Costinha, March 14, 2007
Sorry.... but invading other countries is an american specialty. That's why you people are loved evrywhere!
Hiya Costa
written by Ric, March 14, 2007
While it´s true that the USA is number one militarily, no question, why would that be the reason that we are loved everywhere? Maybe in Kuwait, Grenada and places like that, but not everywhere. The reason we are universally loved must be our affability. "It´s Nice to be Nice", Father Divine once said. Try it yourself, Costa!!! People will like you!!!!! Have a nice evening....
Ouch.....again!
written by Costinha, March 15, 2007
Rickie....Go talk to someone of your own species!
...
written by anderson, March 15, 2007
let's see where this goes
i just hope many jobs are created, and i hope to see citizens more happy
and i hope bush doesnt start another war, the war for ethanol hhahahaha
gee let the arabs rule their land bud, kick their ass but get the fduckadf out
...
written by Gringo Stupid, March 24, 2007
Yeah, when Bush comes.... big protests... when Shove-Ass comes, the 2 bit dictator street thug... where are the protests?

Uuuhhh, the boogie man Bush! What a bunch of idiots infets this planet!
...
written by Gringo Stupid, March 24, 2007
Re: Lets take out Chavez

Brasil can't invade its own favelas, what to spead of taking out Shove-ass in Venezuela...

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