UPDATE 3-Biofuels, trade dominate EU-Latin American summit

Reuters: [2008-05-17 04:23:00]

(Updates with new quotes, details; changes byline)

By Terry Wade

LIMA, May 16 (Reuters) - European and Latin American leaders called for action to tackle surging food prices and global warming at a summit in Peru on Friday, despite differences over biofuels and free trade.

Leftist Bolivian President Evo Morales said he feared the poor could suffer as his regional counterparts rush to sign free-trade deals with Europe, and others warned of a looming world food emergency, which some attribute in part to greater use of biofuels.

"If the crisis deepens, hundreds of millions of people will be threatened by hunger," Peruvian President Alan Garcia told the fifth gathering of heads of state from Europe, Latin America and the Caribbean.

The European Union and Brazil, the world's top ethanol exporter, back biofuels, but many Latin American countries blame them for pushing up food prices and causing hunger in a region where a third of the population lives in poverty.

Critics say the EU should scrap its target of having renewable fuels make up 10 percent of road transport fuels by 2020, saying the goal will contribute to hunger and environmental damage around the word.

European leaders played down the risks.

"The impact of biofuels (on food prices) should not provoke such alarm, because from my point of view the relationship isn't that clear," Spanish Prime Minister Jose Luis Rodriguez Zapatero told reporters.

Even as many poor nations in Latin America criticize the use of food crops such as corn and soybeans to make fuels, they are increasingly worried about climate change and say rich states must cut carbon emissions.

Peru created an environment ministry this week to help cope with the impact of rising global temperatures, which studies show could melt its Andean glaciers within 25 years.

While there was broad support for initiatives to combat global warming, including carbon trading programs and reforestation, leaders struggled to agree about trade.

DIVIDED ON TRADE

Proponents say opening up borders would lower food prices by removing tariffs, but skeptics say trade pacts could hurt food production by slashing subsidies.

The issue has exposed ideological disagreements between Peru and Colombia, both free-trade enthusiasts, and leftist leaders like Bolivia's Morales, a former coca grower who says trade deals could hurt peasant farmers.

Peru and Colombia called on Friday for their countries to be put on a "fast track" in trade talks between the EU and Andean countries.

Europe is keen to boost trade with resource-rich Latin America and pushed talks with three trade blocs in the region.

Michelle Bachelet, president of staunch free-trader Chile, called for a global trade agreement.

"I'm making an urgent plea for us to successfully wrap up the Doha round," she said. "If we have freer and fairer agricultural trade, we'll have more food."

Although the summit's final statement included few concrete measures, some leaders used the occasion to patch over differences.

Chavez, who often insults conservative leaders, apologized to German Chancellor Angela Merkel only days after calling her a political descendant of Adolf Hitler.

"I haven't come here to fight," Chavez said after they shook hands. "I told her that I was sorry if I'd been harsh."

Chavez irritated some leaders at a summit in Chile last year, prompting the king of Spain to tell him to "shut up."

(Additional reporting by Maria Luisa Palomino, Helen Popper, Marco Aquino, Dana Ford, Silene Ramirez and Ricardo Serra; Editing by Eric Walsh)

((terry.wade@reuters.com; +5411 4318-0655; Reuters Messaging: terry.wade.reuters.com@reuters.net))

Keywords: EU LATINAMERICA/

*TOP NEWS* Latin America

Reuters: [2008-05-16 23:55:00]

TOP NEWS SUMMARIES ON OTHER SUBJECTS 
|Equities [TOP/EQU] | General     [TOP/G] | Features [TOP/FEA]| 
|Forex    [TOP/FRX] | Commodities [TOP/C] | All Top News[TOP/]| 
............................................................... 
((Xtra clients: double click on 
http://topnews.session.rservices.com to see Top News Pages in 
multimedia Web format.)) 
................................................................ 
For news and data double click on the codes in brackets. 
Access to some items may depend on subscription level. 
................................................................ 
TOP STORIES 
> Dominicans vote in race tipped to favor incumbent   [nN16384290] 
> Chavez apologizes to Merkel over Hitler remarks     [nN16440053] 
> Chile says Chavez wrong about police chief probe    [nN16427672] 
> Biofuels and trade divide EU, Latin American leaders[nN16399087] 
> Mexico holds interest rate steady, risks balanced   [nN16402526] 
> Panama to deploy special force on Colombian border  [nN16429170] 
 
INTERVIEW 
> Development crucial to saving the Brazilian Amazon  [nN16405901] 
................................................................. 
UP-TO-THE-MINUTE HEADLINES 
Economic indicators [ECI-LATAM]   Earnings news   [RES-LATAM] 
Economic news    [E-LATAM]        Political news  [POL-LATAM] 
............................................................. 
LIVE PRICES & DATA 
Brazil's Bovespa stock index <.BVSP>   Mexico's IPC index  <.MXX> 
Argentina's Merval index     <.MERV>   Foreign exchange    <LFX=> 
................................................................ 
HOW TO FIND INFORMATION YOU NEED 
| <REUTERS> | <NEWS> |  <PHONE/HELP> | 
| <EQUITY>  | <BONDS> | <MONEY> | <COMMODITY> | <ENERGY> | 
................................................................ 
Page editor: Todd Benson +55 11 5644-7703 
................................................................ 
Keywords: *TOP NEWS* Latin America 
    

*TOP NEWS* Latin America

Reuters: [2008-05-16 23:49:00]

TOP NEWS SUMMARIES ON OTHER SUBJECTS 
|Equities [TOP/EQU] | General     [TOP/G] | Features [TOP/FEA]| 
|Forex    [TOP/FRX] | Commodities [TOP/C] | All Top News[TOP/]| 
............................................................... 
((Xtra clients: double click on 
http://topnews.session.rservices.com to see Top News Pages in 
multimedia Web format.)) 
................................................................ 
For news and data double click on the codes in brackets. 
Access to some items may depend on subscription level. 
................................................................ 
TOP STORIES 
> Dominicans vote in race tipped to favor incumbent   [nN16384290] 
> Chavez apologizes to Merkel over Hitler remarks     [nN16440053] 
> Chile says Chavez wrong about police chief probe    [nN16427672] 
> Biofuels and trade divide EU, Latin American leaders[nN16399087] 
> Mexican holds interest rate steady, risks balanced  [nN16402526] 
> Panama to deploy special force on Colombian border  [nN16429170] 
 
INTERVIEW 
> Development crucial to saving the Brazilian Amazon  [nN16405901] 
................................................................. 
UP-TO-THE-MINUTE HEADLINES 
Economic indicators [ECI-LATAM]   Earnings news   [RES-LATAM] 
Economic news    [E-LATAM]        Political news  [POL-LATAM] 
............................................................. 
LIVE PRICES & DATA 
Brazil's Bovespa stock index <.BVSP>   Mexico's IPC index  <.MXX> 
Argentina's Merval index     <.MERV>   Foreign exchange    <LFX=> 
................................................................ 
HOW TO FIND INFORMATION YOU NEED 
| <REUTERS> | <NEWS> |  <PHONE/HELP> | 
| <EQUITY>  | <BONDS> | <MONEY> | <COMMODITY> | <ENERGY> | 
................................................................ 
Page editor: Todd Benson +55 11 5644-7703 
................................................................ 
Keywords: *TOP NEWS* Latin America 
    

Chavez apologizes to Merkel over Hitler remarks

Reuters: [2008-05-16 23:16:00]

LIMA, May 16 (Reuters) - Days after calling German Chancellor Angela Merkel a political descendant of Adolf Hitler, Venezuelan President Hugo Chavez shook hands with her on Friday and apologized.

"I haven't come here to fight. I was pleased to shake hands with the German chancellor," Chavez was quoted as saying at a summit of European and Latin American leaders in the Peruvian capital, Lima.

"I told her that I was sorry if I'd been harsh," he said, according to Peru's state news agency Andina.

Photographs showed the two smiling as they shook hands while heads of state mingled at the gathering dedicated to tackling poverty and climate change.

Merkel, a conservative, had sought to play down the spat before her arrival in Lima, saying she would greet all delegates courteously.

Earlier this week, Chavez made his Hitler comments after Merkel implied the leftist leader had harmed relations between Europe and Latin America.

Chavez routinely insults conservative leaders, especially U.S. President George W. Bush, calling him the devil.

During a summit in Chile late last year, Spain's king told the socialist leader to "shut up." (Reporting by Marco Aquino; Writing by Helen Popper; Editing by Terry Wade and John O'Callaghan) ((helen.popper@reuters.com; +54 11 4318-0655; Reuters Messaging: helen.popper.reuters.com@reuters.net)) Keywords: VENEZUELA CHAVEZ/MERKEL

UPDATE 2-Biofuels and trade divide EU, Latin American leaders

Reuters: [2008-05-16 23:11:00]

(Recasts throughout with fresh quotes, details)

By Dana Ford and Maria Luisa Palomino

LIMA, May 16 (Reuters) - Biofuels and free trade divided European and Latin American leaders at a summit meeting in Peru on Friday as they sought to tackle soaring food prices and global warming.

Leftist Bolivian President Evo Morales said he feared the poor could suffer as his regional counterparts rush to sign free-trade deals with Europe, and others warned of a looming food emergency across the world.

"Soon, if the crisis deepens, hundreds of millions of people will be threatened by hunger," Peruvian President Alan Garcia, who has denounced biofuels, told the fifth gathering of heads of state from Europe, Latin America and the Caribbean.

The European Union and Brazil, the world's top ethanol exporter, support so-called greener fuels, but many Latin American countries blame them for pushing up food prices and causing hunger in a region where a third of the population lives in poverty.

Critics say the EU should scrap its target of having biofuels make up 10 percent of road transport fuels by 2020, claiming the goal will contribute to hunger and environmental damage around the word.

European leaders played down the risks.

"The impact of biofuels (on food prices) should not provoke such alarm, because from my point of view the relationship isn't that clear," Spanish Prime Minister Jose Luis Rodriquez Zapatero told reporters.

Even as many poor nations in Latin America criticize using food crops such as corn and soybeans to brew renewable fuels, they are increasingly worried about climate change and say rich states must cut carbon emissions.

Peru created an environment ministry this week to help cope with the impact of rising global temperatures, which studies show could melt its Andean glaciers within 25 years.

While there was broader support for initiatives to combat global warming, including carbon trading programs and reforestation, leaders struggled to agree about trade.

DIVISIONS

Proponents say opening up borders would lower food prices by removing tariffs, but skeptics say trade pacts could hurt food production by slashing subsidies.

The issue has exposed ideological disagreements between Peru and Colombia, both free-trade enthusiasts, and leftist leaders like Bolivia's Morales, a former coca grower who says trade deals could hurt peasant farmers.

Peru and Colombia called on Friday for their countries to be put on a "fast track" in trade talks between the EU and Andean countries.

"If Ecuador and Bolivia say we need more flexible time frames, we're not in the business of denying them that. But they can't throw obstacles in the way of our negotiations," Colombian President Alvaro Uribe said.

Europe is keen to boost trade with Latin America, where Asian countries have invested billions in natural resources.

"The lack of trade between the European Union and Latin America is nothing less than criminal," Britain's junior Foreign Office minister Kim Howells told Peruvian television.

Despite the policy rifts at the summit, some leaders seemed to patch over their differences.

A smiling German Chancellor Angela Merkel shook hands with Venezuela's firebrand leftist President Hugo Chavez, only days after he called her a political descendant of Adolf Hitler for implying that he had damaged relations between Europe and Latin America.

"I haven't come here to fight. I was pleased to shake hands with the German chancellor," Chavez told Peru's state news agency Andina. "I told her that I was sorry if I'd been harsh."

Chavez often insults conservative leaders, and especially likes to target U.S. President George W. Bush. At a summit in Chile last year, Spain's king told him to "shut up."

Chavez said on Thursday he might cut off diplomatic relations with Colombia, the closest ally of the United States in Latin America.

Both Chavez and and Ecuadorean President Rafael Correa, a leftist ally, have been locked in a dispute with the conservative government of Colombian President Alvaro Uribe since March.

Ecuador severed ties with Colombia after its army raided a Colombian guerrilla camp in Ecuadorean territory on March 1, and Correa accused Colombia of launching a smear campaign linking him and Chavez to the leftist rebel group FARC.

"So long as it behaves like this, it's impossible to have a good relationship," Correa told Reuters. (Additional reporting by Terry Wade, Helen Popper, Marco Aquino, Silene Ramirez and Ricardo Serra; Editing by Kieran Murray) ((terry.wade@reuters.com; +5411 4318-0655; Reuters Messaging: terry.wade.reuters.com@reuters.net)) Keywords: EU LATINAMERICA/