Chapter 6 Closing Case "с Why Did Global Food Prices Rise?
United States and European Union gain benefit when tariff is imposed on the imports of sugarcane and ethanol production is promoted by the governments. Both policies make Brazil suffer anyhow. The farmers are given incentives by governments of the developed countries to plant more such crops which could be turned into bio-fuels like ethanol. Farmers are encouraged to grow more crops like maize and use less land for other crops like wheat (World Food Programme, 2009, p. 32). Tariffs on sugarcane import provide protection to both US and EU against important foreign competitors like Brazil, which is forced to face huge troubles at the hands of tariffs imposed on the import of sugarcane by US and EU, thus making sugarcane very costly for the consumers and hindering its import. Due to efforts