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'Disastrous for the Poor' Warning on Biofuels

Press release, Rio de Janeiro, Brazil, 8 March 2007

Increasing the production of bio-fuels would have a disastrous impact on poor communities in Latin America, according to anti-poverty agency ActionAid.

Bio-fuels such as sugar cane alcohol and ethanol are among issues being discussed by Presidents George Bush and Lula Da Silva, along with the resumption of talks at the World Trade Organisation.

The fuels could provide an alternative power supply, producing clean energy and generating income for poor rural populations in Latin America. Under current plans, the US is committed to increasing production of bio-fuels and intends buying more from countries across the region.

"However, much of the production has resulted in the concentration of land, resources and income into the hands of the few, the destruction of forests, contamination of soil, air and water and the expulsion of rural populations from their territory," said Celso Marcatto, Food Rights Coordinator at ActionAid Brazil.

"In many cases, the sugar cane industry has provoked uncontrolled destruction of natural resources, restricted smallholder farmers access to land and resulted in the exploitation of labour," said Marcatto.

A recent study on soy production by the Brazilian organisation FASE shows that entire communities in Cerrado and Amazonia have been driven out, deepening poverty and hunger in the area.

"The amount of land deforested in order to produce soy is growing at a rate of 300% a year in Amazonia and will continue to grow. Concentrating the production of soy in the hands of four multinationals and two Brazilian companies can help to increase Brazilian economic growth and exports, but only for a while," said Marcatto.

"In the long term, millions of people's livelihoods will be destroyed while the biodiversity of the region will be undermined."

Mr.Bush and Da Silva will also discuss ways of reaching an agreement in the global talks at the World Trade Organisation.

"The Brazilian government seems ready to make concessions at the WTO talks, decreasing import duties on industrial goods and services from the US and the EU, to satisfy the appetite of multinational agro-businesses," said Adriano Campolina, Director of ActionAid Americas.

"If the Brazilian government continues to defend this position, it risks contradicting its objective to strengthen regional integration and put poverty reduction at the top of its agenda as it committed to do during the Mercosur Summit in Rio last month," he added.

ENDS

ActionAid works with more than 25 million poor and excluded people in 47 countries in Africa, Americas, Asia and Europe to support them in securing their rights and eradicating poverty. More information




 
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