Brazil defends US ethanol deal

PORLAMAR – Brazil defended its ethanol agreement with the United States despite efforts by Venezuelan President Hugo Chavez to undermine the deal using his country’s vast reserves of oil and natural gas.

Chavez did not publicly discuss his dispute over ethanol with Brazilian President Luiz Inacio Lula da Silva at the start of a two-day energy summit on Monday, but the Venezuelan leader has pledged to explain his objections to last month’s US-Brazil ethanol agreement. Chavez, a staunch critic of US President George W.Bush, has warned Brazil’s deal with Washington would monopolise arable lands and starve the poor – concerns shared by his Cuban ally Fidel Castro.But Marco Aurelio Garcia, an adviser to Silva, denied that Brazil’s plan would cause food prices to skyrocket and defended it as a way of creating jobs.”Nobody stops eating due to shortage of food.People stop eating due to lack of income.That’s the fundamental issue,” Garcia said.The United States and Brazil are the world’s two biggest producers of ethanol – the alcohol-based fuel made from crops such as sugarcane or maize.They signed an “alliance” last month to promote its production in the region and create international quality standards to allow it to be traded as a commodity like oil.Nampa-APChavez, a staunch critic of US President George W.Bush, has warned Brazil’s deal with Washington would monopolise arable lands and starve the poor – concerns shared by his Cuban ally Fidel Castro.But Marco Aurelio Garcia, an adviser to Silva, denied that Brazil’s plan would cause food prices to skyrocket and defended it as a way of creating jobs.”Nobody stops eating due to shortage of food.People stop eating due to lack of income.That’s the fundamental issue,” Garcia said.The United States and Brazil are the world’s two biggest producers of ethanol – the alcohol-based fuel made from crops such as sugarcane or maize.They signed an “alliance” last month to promote its production in the region and create international quality standards to allow it to be traded as a commodity like oil.Nampa-AP