Lula warns against global protectionism

Brazilian President Luiz Inacio Lula da Silva issued a stern warning against countries considering economic protectionism.

Last month, Lula considered appealing to the World Trade Organization (WTO) over so-called “Buy American” clauses in the Obama administration’s $787 billion stimulus bill. Yesterday, Lula went further in critiquing protectionist measures:

"If the United States, Europe, Brazil close themselves, the crisis could become much bigger and produce chaos instead of a solution," Lula told industry leaders in Sao Paulo during a visit by Jan Peter Balkenende, the prime minister of the Netherlands…

Lula also intends to speak against global protectionism and for the completion of the WTO's Doha round at the Group of 20 meeting of leading economies in London next month.

"The Doha round was almost finished but we had elections in the United States and then India and politics dominated. Now, nothing stands in the way," said Lula. "The Doha round is more of a political than a financial decision."

Lula’s comments came on the same day as the U.S. Trade Representative (USTR) identified Brazil as one of the “key emerging markets of the world.” Yet the USTR’s annual report also issued its own warning that the Doha round will not be renewed unless other countries are more open to U.S. goods.

The USTR report was the first issued under Barack Obama's presidency and also examined free trade. The USTR advised Congress to go ahead and approve a free trade pact with Panama as well as to work out disagreements to soon ratify a bilateral agreement with Colombia. NAFTA shouldn’t be scraped altogether, said the USTR, but suggested that Mexico and Canada revise several provisions in order to aid U.S. workers.

Image- TopNews.in
Online Sources- Bloomberg, Reuters, The Latin Americanist, easybourse.com, Economic Times, Radio Netherlands Worldwide

WTO talks must resume says Brazil’s Amorim

Global trade talks that stalled last month must resume ASAP said Foreign Minister Celso Amorim earlier today. “I'm still hopeful that we can still make an effort, but it has to be very fast,” observed Amorim during a visit to Canberra where he met with his Australian counterpart.

The Doha Round of trade talks broke down in July when countries could not reach a compromise over agricultural tariffs. One of the sticking points during negotiations revolved around biofuels with Brazil pressing the U.S. and E.U. to permit increased ethanol imports.

Earlier this week, Brazil appealed to the World Trade Organization (WTO) to impose sanctions against the U.S. over cotton subsidies. The request was made after a WTO panel upheld a 2007 ruling that concluded that U.S. subsidies unfairly undercut foreign competitors.

Image- abc.net.au

Sources- Xinhua, IHT, Guardian UK, Forbes, Reuters India

McCain: Brazil could replace Russia in G8

Republican presidential hopeful John McCain gave a major foreign policy speech last week. Though most of the attention was placed on tensions in the Middle East and U.S. military deployment in Iraq, McCain criticized Russia’s government and threatened them by using Brazil:

But it was his stab at India's old ally Russia, a country with which the Bush administration forged a close partnership in the beginning, that surprised analysts. Warning against the dangers posed by a ''revanchist'' Russia, McCain said the US should ensure that the G8, the group of eight highly industrialized states, becomes again a club of leading market democracies: it should include Brazil and India but exclude Russia, he said.

Perhaps McCain has understood the increased importance of Brazil in global trade like in Doha round negotiations. Then again, maybe he was just nostalgic of a brief tryst he had with a Brazilian model some fifty years ago.

Sources- Wonkette, The Latin Americanist, International Herald Tribune, Times of India, Reuters India

Image- Al Jazeera

Lula optimistic over Doha trade talks

Brazilian President Luiz Inacio Lula da Silva expressed hope that the Doha round of global trade talks will move forward. As the Associated Press reported:

"Don't be surprised if very shortly we have an agreement on the Doha Round; that would be very good for the world economy," Brazilian President Luiz Inacio Lula da Silva said following a meeting with European Commission President Jose Manuel Durao Barroso.

Silva said the current political climate was favorable to an agreement in the trade talks named after the Qatar capital where they were launched in 2001.

Barroso concurred with Lula and added that a conclusion to the Doha round would "be very good news for the world economy."

The Doha round has been hurt by disagreement between developed and developing countries over import tariffs and farm subsides. Brazil- along with countries like Argentina and India-has rejected large cuts in industrial goods tariffs.

Sources- Bloomberg, International Herald Tribune, Guardian UK, The Latin Americanist, Xinhua

Image- BBC News (Brazilian President Luiz Inacio Lula da Silva speaks at the 2007 World Economic Forum)

Brazil: Strong reply to U.S. critique on global trade

The U.S. is acting “unfair, unreasonable and irrational” in its demands during the Doha Round of free trade negotiations, declared Brazilian Foreign Ministry Undersecretary Roberto Azevedo.

The U.S. is trying to force Brazil into taking a larger role in discussions and convince lesser developed countries (LDCs) to make concessions. Yet Azevedo accused the U.S. and other advanced industrialized nations (AINs) of being uncooperative with LDCs:

“The U.S., the EU, the other developed countries are picking and choosing the provisions of the agriculture text they can live with. On the other hand, they are asking the developing countries to take the (industry) text as a 'take it or leave it' business which is frankly unfair, unreasonable, and irrational…

I can imagine that what they are essentially trying to do is put the blame on the shoulders of others if the round doesn't go forward.”

Brazil is not alone in its criticism of AINs like the U.S. and E.U.; a group of developing countries including India, Argentina, and the African members of the World Trade Organization issued a report rejecting massive cuts in industrial goods tariffs.

Thus, the impasse that has hampered global free trade talks for years appears to continue with no end in sight.

Sources- International Herald Tribune, Reuters, MSNBC, The Latin Americanist

Image- ABC News Online

Trade impasse continues after G8 summit

Earlier this month, there was hope that the G8 summit would renew global trade negotiations between wealthy and underdeveloped states. Yet by the end of the summit last Friday no compromise was found and this has seemed to have caused a division in the Americas.

Despite Brazil representing undeveloped countries during the talks in Germany, a group of eight countries from Asia and the Americas will present a proposal that would call for finding a “middle ground” involving major concessions from rich and poor countries. The plan appears to agree with the viewpoint of most economic experts in that something is far better than nothing:

“‘The losses and missed gains associated with a failure or freezing of the (Doha round) far outweigh the costs of a less than perfect agreement,’ said the proposal of the eight WTO members. ‘The time has come for all WTO members to show the flexibility needed to conclude the negotiations by early 2008 at the latest.’”

The break from Brazil and India may represent a turnaround in trade talks since the Doha Round first started in 2001.

Image- Turkish Press

Sources- Christian Science monitor, Monsters & Critics, Forbes, Reuters UK, Wikipedia