Over on Stolen Moments: A Green Digest I saw this about Bush Ethanol and the US (what else)
An agreement with a foreign country to produce ethanol jointly, or even an agreement to import foreign ethanol, would ease the demand for corn and thus lower prices. This might not benefit corn farmers, but it would lower prices in other sectors of the economy, easing the burden on consumers.
Given my earlier post today that looks like a sensible move.
Bush also has another strong reason for a deal with Brazil... energy independence, not energy autonomy. Importing ethanol would not necessarily mark a shift from dependence on foreign oil to dependence on foreign ethanol. It would simply be a further diversification of fuel sources and expansion of trade with a country that produces an alternative fuel substantially more cost-effectively than the U.S.
Again this would reduce inflationary pressure in the US and could help spread wealth, not only to Brazil but also to farmers in other parts of the world.