March 19, 2007: Energy Deal with Brazil Raising Eyebrows in Minnesota

A trade deal President Bush signed with Brazil is drawing reaction from supporters of energy independence in Minnesota.

MINNESOTA NEWS CONNECTION

St. Paul, MN - An energy agreement President Bush signed during his recent trip to South America is raising concerns in Minnesota. It calls for the U-S and Brazil to work together to produce alternate fuels, but Doug Peterson with the Minnesota Farmers Union says it could lead to more fuel imports, which doesn't make sense.

"We should be energy-independent, whether it's fuel or it's electricity, we have the technologies. There is this issue on national security. Anything we do to get off that track of energy-independence is absolutely wrong for the direction of this country."

Peterson says importing ethanol will also hurt farmers and taxpayers, and subsidize ethanol production in Brazil. He says a better course is to invest in building our own renewable fuel capacity.

Peterson says we should put our efforts into producing energy here.

"U.S. taxpayers are going to be sending our dollars, for ethanol production, in a foreign country. I think that's just stupid. Why are we going to be taxing our people for new technology, and then shifting it away from this country and our ability to produce our own fuel."

The Bush administration says the agreement will increase production of alternative fuels and strengthen ties with South American allies. The United States currently has trade restrictions on ethanol imports to encourage domestic production. Brazil sees the U.S. as a prime export market.

A new energy deal signed by the President with Brazil during his recent trip to South American is raising concerns in the Midwest. Doug Peterson is president of the Minnesota Farmers Union.

"What the agreement is, is that they're going to start working together to have foreign biofuels and ethanol imported into this country. So, the Bush administration, wanting to look at more sources, now ends up going to a foreign source, contradicting what we need to do in this country - that is, raising our own fuel."

He says the deal also bypasses current tariff laws designed to protect domestic alternate energy production. Bush says the deal will help both nations share research and development, and open markets.