Today Online 29 Apr 08;
BRASILIA — Brazilian President Luiz Inacio Lula da Silva has blasted wealthy nations for their punitive agricultural tariffs and urged them to "stop your hypocrisy" and start buying Brazilian biofuel.
"We have said that if we want to achieve success in the Doha Round of World Trade Organisation (WTO) negotiations, then rich countries must lower their agricultural tariffs for poor countries' products entering their markets," he told newspaper Correio do Brasil on Sunday. "So, stop your hypocrisy and start buying biofuels."
The WTO's Doha round of talks to reduce trade barriers was launched in the Qatari capital in 2001 with the aim of reaching a deal by 2004, but has foundered ever since, principally in disputes between developed and developing countries on agricultural subsidies and industrial tariffs.
Mr da Silva said that it was "inconceivable" that wealthy nations have tried to pin the blame for the explosive rise in global food prices, which has led to violent riots in some poor countries, on biofuels.
Sugar-based fuel produced in Brazil is being fingered for causing global price surges. Brazil is the world's second-largest ethanol producer after the United States, whose ethanol is corn-based.
"The world does not produce biofuels and has 800 million people who go to sleep hungry," Mr da Silva said. "Those who criticise biofuels have never criticised the price of oil. The developed world imports oil with no tariffs, yet they place an absurd tariff on Brazilian ethanol."
Mr da Silva said such a situation exists because Brazil is now a major player in international trade.
"We are the largest exporter of coffee, orange juice, soy and beef," he said. "We can no longer accept the argument that rich countries want to impose on us."
Mr Da Silva recognised that the market for sugar-based ethanol would surge if there were greater public support for the production of fuel from biological materials.
In the Brazilian biofuel industry, companies that produce agro-based fuels enjoy major tax breaks.
Former French economy minister Jean Arthius warned in Sao Paulo that taxes on biofuels could be one form of regulation, with the need "to ensure food security" remaining a vital concern. — AFP
