BUSH COURTS LATIN AMERICA FOR ALLIES IN BIOFUEL PRODUCTION
US PRES. PROPOSES FORMING COLLECTIVE BARGAINING CARTEL WITH BRAZIL FOR CROP-BASED FUELS
20 March 2007 :: Lainey Johr

The war in Iraq is not winning US President George Bush any popularity points internationally these days, but a focus on the war against poverty and environmentally progressive energy production certainly might; or that is the bet the Bush administration is wagering as the president visits South America this week to discuss biofuel.

As a means of lessening US dependence on oil, Bush has established an accord with Brazilian President Luiz Inacio Lula da Silva to further develop Brazil’s already burgeoning ethanol industry.

Bush donned a hard hat and toured one of Brazil’s fuel depots to highlight the importance of ethanol, a biofuel key to the Bush administration’s energy plan. 

Lula, as the Brazilian President is often called, has been encouraging Bush to emphasize the US’ focus on ethanol for some time.  Brazil has the world’s premier ethanol development program, and is the world’s largest exporter of the biofuel. 

Calling Brazil’s allegiance with the US ‘a strategic alliance that will allow us to convince the world that everyone can change the energy blend,’ Lula claims that biofuel production will create more jobs and improve environmental conditions.

Brazil’s ethanol production has changed their economy.  It provides 40 percent of the non-diesel gas used nationwide, allowing 70 percent of all vehicles sold in Brazil to be flex-fuel that can run on both gas and ethanol.

Bush’s plan is to reduce US gasoline consumption by 20 percent in ten years, and he is depending on ethanol to lead the way toward independence from the fossil fuel. 

The two leaders forged an agreement to continue each country’s development of biofuel technology and to encourage private investment in similar technologies around the southern continent.  A move in part designed to counteract the popularity of Bush’s recent enemy number one in Latin America, Hugo Chavez of Venezuela, whose nation also happens to control much of the continent’s exports of crude oil.

Their agreement also states that both countries will work toward creating an international standard for biofuel production, giving technical support, supporting research and development all in cooperation with the United Nations Foundation, the Organization of American States and the Inter-American Development Bank.

The US President even invited Da Silva to visit Camp David, a move to further encourage close relations between the two leaders.

When asked to describe the administration’s diplomatic mission, Bush said, ‘I would call our diplomacy quiet and effective diplomacy – diplomacy all aimed at helping people, aimed at elevating the human condition, aimed at expressing the great compassion of the American people.’

Bush and Lula also vowed to work cooperatively during negotiations at the World Trade Organization aimed at improving the worldwide economy and poverty relief, although both seemed confident that negotiations would have to continue and that few agreements would be made anytime soon.

Bush would not agree on a requested reduction of the current 54 percent tariff on Brazilian imported ethanol, ‘it’s not going to happen,’ said Bush.

The US President also met with Uruguayan president Tabare Vazquez to discuss loosening trade restrictions in Latin America.  Such negotiations are hampered by Uruguay’s membership in a rival South American trade alliance. 

Also on the table for discussion with President Vazquez is the country’s ethanol development program.  Mr. Bush hoped to make ethanol a growing biofuel for the Uruguayan economy that is growing the current rate of 7 percent per year.

Ethanol has its opponents, including those who claim that an increase in US production of ethanol would be corn-based, which is land and water intensive.  In addition, increased production would cause an increase in the price of the corn and its related products such as tortillas, which are a staple food item for many. 

Production of ethanol in Brazil also means an increase in demand for arable land, much of which will include the destruction of the pristine Amazon region.

According to Greenpeace, an environmental non-profit organization, any reduction in greenhouse gasses saved by the use and production of ethanol is minimal compared to that which could be saved by placing a cap on carbon emissions, a move opposed by the Bush administration.

Other topics discussed between the two leaders included a reduction of tariffs on Uruguayan agricultural exports into the US and a more forgiving immigration policy.  According to Bush, the administration is ‘fully prepared to reduce agricultural subsidies’ and that a more ‘compassionate and rational immigration law’ could be sought.

The two discussed matters seated together in a traditional barbeque called an asado.

The President is also visiting Colombia, Guatemala and Mexico during this campaign to improve relations and pump up support for ethanol investments. 

Widespread protests have hampered Bush’s trip, most in opposition to the war in Iraq.  Protestors gathered in the thousands, clashing with local police. 

Hugo Chavez led one particular anti-Bush rally attended by nearly 20,000 people at one location in Buenos Aires, Argentina, just across the river from Bush’s meeting with President Velazquez.   Chavez said the US president was a ‘political cadaver’ and  predicted his future as becoming ‘cosmic dust.’

The Venezuelan leader also took time to ridicule President Bush’s pledge of 75 million dollars to assist Latin American youth with English language skills and study in the US, calling Bush a ‘wolf in sheep’s clothing.’

Chavez has plans to follow the Bush trail throughout the continent.  Chavez is scheduled to make appearances in Bolivia while Bush is in Colombia, and in Haiti while Bush is in Guatemala, all designed to counteract any attempt by the US president to court public support.

In response to Chavez, Bush said, ‘I don’t think America gets enough credit for trying to help improve people’s lives… And so my trip is to explain as clearly as I can that our nation is generous and compassionate.’

The US imports about 10 percent of its crude oil from Venezuela, the equivalent of 1.04 million barrels every day.

• New York Times
• Washington Post
• Bloomberg
• CNN International

BACKGROUND:

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