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In: Economics

(400-500 words) In 2002 New York Times report indicated that Brazil's Amazon-based export industries that are...

(400-500 words)

In 2002 New York Times report indicated that Brazil's Amazon-based export industries that are leading to the destruction of environment introduced new environment-oriented foreign aid. Why was Brazil considered, what was the procedures followed, and explain it actual effect?

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Expert Solution

Dear Student,

It is very imperative to every exporter to follow the host countries regulation and laws while starting any type of export related business. In 2002 Brazil's Amozon -Based export industries violated some restriction upon the export and it caused to impact on enviornment of Country. So brazilian goverment taken action on Amazon

This issue is highlited by World Bank as " The cattle sector in the Brazilian Amazon is the largest driver of deforestation in the world,it is responsible for one in every eight hectares destroyed globally. Efforts to halt global deforestation emissions must tackle this sector" Further to it Brazalian Gorvenment identified that Brazilian's Amazon has the greatest annual average deforestation by area of anywhere in the world. Cattle are responsible for about 80% of all deforestation’ in the Amazon region.This makes it the world’s largest driver of deforestation, responsible for more forest loss than the total deforestation in any country outside Brazil.

The reason to consider Brazil by the world bank is that the Brazilian government Forecasts Domination of the global Beef trade Brazil has the world’s largest commercial cattle herd and is the world’s largest beef exporter.

The Brazilian government forecasts a doubling of Brazil’s share of global trade in beef products by 2018.The Brazilian cattle sector has seen rapid export-oriented growth over the last decade.Exports of beef and veal from Brazil increased almost six-fold in volume between 1998 and 2008.By 2008, nearly one in every three tonnes of beef traded internationally came out of Brazil. The total value of the cattle trade for Brazil was $6.9 billion22 in 2008, with leather representing more than a quarter of that value.By 2018, the government foresees Brazil supplying almost two out of every three tonnes of beef traded internationally.

To get rid of this problem brazilian government followed below procedure

1 ) In July 2008, Brazil’s President Lula announced the 2008/2009 Agricultural and Livestock Plan, which made available $41 billion in credit lines to boost agricultural and livestock production. 85% of this credit was designated for corporate agriculture

2) the Brazilian government and research institutes, and analysis by Greenpeace consistently conclude that cattle ranching occupies about 80% of all deforested land in the Amazon region.

3) The Brazilian goVernment part- owns the gloBal Corporations eXpanDing in the Amazon

Thank You !!


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