Ahmadinejad’s Sugar Daddy

The Brazilian government is developing closer ties to Iran, even as Iran faces stringent economic sanctions for its nuclear program. By exporting ethanol, President Lula da Silva’s government seeks to help Iran, a major oil exporter that lacks refinery capacity, lessen its dependence on foreign gasoline. Assisting Iran complicates Brazil's relationship with the United States, one of the chief architects of the UN sanctions. However, Brazil's actions reflect US focus on another aspect of trade: Hoping to placate the US agriculture industry, both Presidents Bush and Obama rebuffed Brazilian requests to lower US tariffs on Brazilian ethanol and sugar. Brazil is the world’s largest sugar grower and, after the US, the world's second largest producer of ethanol. As a result, protection of US corn farmers and ethanol producers indirectly contributes to a burgeoning economic and political relationship between Iran and Brazil. – YaleGlobal