For example, Brazil was instrumental in the collapse of the World Trade Organization (WTO) talks in September 2003 at Cancun, Mexico when Lula led a walkout by the developing countries over the issue of agricultural subsidies by the G8 nations. Under Brazil's lead, the developing nations, refused to negotiate new foreign-investment rules until powers like the U.S. And the European Union promised to cut the lavish agriculture subsidies that effectively keep developing-world farmers out of lucrative markets (Padgett). Lula has similarly been opposed to the Free Trade Area of the Americas (FTAA) trade pact for the North and South America that the United States wants to promote. Instead, Brazil has supported regional trade pacts such as Mercosul and the South American Community of Nations, which envisage not only a free-trade area within the South American region but a common market like the European Union. It has also promoted increased trade with the Asian and African countries and has refused to follow the "Washington Consensus" and the policy of neo-liberalism. Relations with the United States

The initial apprehensions of the United States about Lula as a leftist radical who would form a Latin American 'axis of evil' with the Communist leaders of Cuba and Venezuela have not come to pass. Lula has continued to pursue a pragmatic foreign policy and maintained friendly relations with the United States by co-operating with it on specific issues without seeking an all-encompassing privileged relationship (Ribando, 11).

Although the two countries have their differences over trade issues as explained above, they agree on the importance of maintaining regional stability and security, fighting terrorism, and combating narcotics, arms, and human trafficking. The two countries are also seeking to promote an 'energy partnership' that seeks to promote the production and use of ethanol as an alternative to fossil fuels.

Environment

The bulk of the Amazon rainforest lies in Brazil. Besides containing a major part of the world's plant and animal species and 20% of the world's fresh water, the Amazon basin also acts as a gigantic sink for global carbon dioxide and is vital for moderating climate change. Hence proper management of the Amazon rainforest in Brazil is of global concern.

The rate of deforestation peaked in 2002~2004 before declining by 32% in 2005 and another 11% in 2006 (Ribando, 23). The Brazilian government attributes the decline to environmental protection measures taken by it. For example, the government created 7 million hectares of new conservation reserves in 2004 and 2005; and in March 2006, President Lula signed the Public Forest Management Law, which aims to decrease illegal logging by allowing access to only 3% of the Amazon on the condition that the logging companies carry out sustainable operations (Ibid.). It remains to be seen, however, whether these measures prove successful in the long run. In the past, designating sites as protected have not been effective as the government often lacks the resources or the will to stop ranchers and farmers from moving into such protected areas.
Works Cited

Biography." Presidency of the Republic. 2008. May 6, 2008. http://www.presidencia.gov.br/ingles/president/

Brazil to Pay off Debts." BBC News. December 14, 2005. May 6, 2008. http://news.bbc.co.uk/2/hi/business/4527438.stm

Leftist Lula wins Brazil election." BBC News. October 28, 2002. May 6, 2008. http://news.bbc.co.uk/2/hi/americas/2367025.stm

Padgett, Tim. "Luiz Inacio Lula da Silva." Leaders & Revolutionaries: Time Magazine. April 26, 2004. May 6, 2008. http://www.time.com/time/subscriber/2004/time100/leaders/100lula.html

Ribando, Clare M. "Brazil-U.S. Relations." CRS Report for Congress. February 28, 2007. May 6, 2008. http://www.wilsoncenter.org/news/docs/RL33456.pdf

It is the 5th largest as well as the 5th most populous country in the world

The plan for creating a Free Trade Area of the Americas (FTAA) was announced at the first Summit of 34 countries in the Western Hemisphere in 1994. However, the FTAA has yet to see the light of day mainly because of differences of opinion between the United States and Brazil

Brazil is the leading global producer of ethanol derived mainly from its sugar cane crop

Brazil