Brazil defends ethanol deal at South American energy summit

Follow us on Twitter

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 has yet to publicly discuss his dispute over ethanol with Brazilian President Luiz Inacio Lula da Silva at the two-day energy summit that ends Tuesday, but the Venezuelan leader has pledged to explain his objections to last month's U.S.-Brazil ethanol agreement.

Chavez, a staunch critic of U.S. President George W. Bush, has warned Brazil's deal with Washington would monopolize 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. - Pravda.ru