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Mercosur
- European Union
Brazil's Minister for Development, Industry and Foreign Trade,
Luiz Fernando Furlan, believes a new trade agreement between
Mercosur (Southern Common Market - Brazil, Argentina, Paraguay
and Uruguay) and the European Union may be stalled until October.
"There are a few points which are still sensitive for
each party," particularly those related to steel and
textile products, said the minister.
Protest against free trade
More than 1,000 people took part in an open-air protest against
free trade near the UNCTAD XI conference site. "Free
trade for the superpowers means freedom; to us it means total
exploitation and destruction," says a pamphlet distributed
to the demonstrators, who also spoke out against the FTAA,
WTO, and IMF. The debate among the protesters seemed to focus
on UNCTAD itself, with some being against it, and others arguing
the necessity of strengthening it.
Brazil in Haiti
UN Secretary General Kofi Annan praised the Brazilian participation
in the peacekeeping mission in Haiti. According to Annan,
Brazil has already earned the right to claim acceptance in
the UN Security Council. "I have supported many discussions
about the reform of the Council," he said.
Peace and Development
"Without balance and peace in the world, we cannot talk
about development," said Paraguayan President Nicanor
Duarte Frutos. "Globalisation, at its current pace, will
only bring revolt," said Frutos, who argues for more
effective action to bring down agricultural subsidies in rich
countries.
Uruguay criticises UNCTAD
Uruguayan President Jorge Batlle said yesterday that UNCTAD
would have been more productive if it had maintained the pace
it had when it was created 40 years ago. "Not all UN
organisms are global. They make isolated efforts." Battle
said UNCTAD should offer training for negotiators from the
nations of the South.
Celso Furtado Auditorium
President Luiz Inácio Lula da Silva unveiled a plaque
with the name of Brazilian economist Celso Furtado at the
entrance to the Anhembi Convention Centre. The venue will
now be called the Celso Furtado Auditorium. Forty years ago,
the Paraiba-born economist was one of the founders of UNCTAD.
The UN institution's secretary general Rubens Ricupero also
paid tribute to his fellow Brazilian.
Brazil and Mexico are in line for third
party European service contracting
Nearly half of the 500 largest European
companies intend to transfer abroad services previously performed
in their own territories. Countries like Brazil and Mexico
are in line for some of these contracts. Even though most
of the companies are installed in Europe and the bulk of employment
goes to Asia, especially India, Latin America should also
receive this type of third party business. This information
comes from a report produced by the United Conference on Trade
and Development (UNCTAD), in conjunction with the Roland Berger
consulting firm, and was cited in a symposium on foreign investments
today in São Paulo, as part of the 11th meeting of
the UNCTAD.
According to the representative of India present
at the symposium, "for each dollar invested in third
party companies abroad, 58 cents are saved (compared to what
it would cost to perform the same service in the country of
origin). In terms of profits, for each US$ 1.45, 66%, that
is, US$ 1.12, returns to the country of origin."
The Brazilian Secretary-General of the UNCTAD,
Ambassador Rubens Ricupero, who represented Brazilian President
Luiz Inácio Lula da Silva at the meeting, affirmed
that "the entry of foreign investments in countries is
no longer an issue. The policy for these investments is that
they should be of quality. The question is how we can derive
benefits from these investments."
The first reason mentioned by European entrepreneurs
for transferring services to other countries was the "reduction
of labor costs." The second factor was the "reduction
of other costs," followed by "improvement in quality."
Among the decisive reasons behind the choice of the country
to locate these companies are, chiefly, costs, the ability
of local workers, and the time difference, but other, more
subjective factors are also taken into account, such as the
success of competitors in their experiences there, the country's
political situation, and the lobbying activities in favor
of the region.
Venezuelan FM calls for
state oil multinational on the continent
Venezuelan Foreign Minister Chancellor, Jesus Perez, defended
the suggestion made by his country's President, Hugo Chávez,
for the creation of a Latin American petroleum organization,
to be called PetroAmerica, uniting the region's principal
exporters. "Multinational, yes. But state-owned,"
he said.
Perez expects to return to Brazil in the second
half of August, he said, to begin bilateral negotiations to
facilitate, at least, the exchange of citizens between the
two countries. The decision arose after an encounter with
the Brazilian Minister of Foreign Relations, Celso Amorim,
during the 11th meeting of the United Nations Conference on
Trade and Development (UNCTAD XI).
The Minister said that he regards the rise
in oil prices as temporary. "A proof of this is that
the Organization of Exporting Countries, the OPEC, raised
its production and the price did not fall. It is not a question
of supply and demand," he affirmed. In his opinion, the
war on Iraq scared the buyers, who are "cowards."
Brazilian FM: S&T
research crucial for developing countries
If developing countries don't make an effort to invest in
research and development, they will never overcome the barrier
that separates them from the wealthier nations. The Brazilian
Minister of Foreign Relations, Celso Amorim, made this affirmation
in a speech at one of the panels held yesterday (14) during
the 11th meeting of the United Nations Conference on Trade
and Development (UNCTAD XI). Also participating in the panel
were Ambassador Rubens Ricupero, Secretary-General of the
UNCTAD, and the Director General of the World Trade Organization
(WTO), Supachai Panitchpakdi.
The Minister emphasized that the UNCTAD provides
an opportunity to discuss partnerships. In this sense, he
added, alliances are formed so that "the Doha Round adheres
to its agricultural mandate and produces the elimination of
agricultural subsidies and the substantial reduction of domestic
props which serve to aggravate hunger and poverty in large
parts of the world."
In the Minister's view, "meetings like
that of the UNCTAD clearly cannot substitute the effective
and responsible actions that are the province of sovereign
governments." Nevertheless, he observed that it is their
role to enlighten and stimulate the critical debate that leads
to development.
"In recent years we have witnessed a
gap between the speeches and arguments in defense of government
policies by those who preach trade liberalization and at the
same time resort to protectionism, espouse the free flow of
capital but restrict its movement, back foreign investment
guarantees and limit agricultural trade, advocate respect
for intellectual property and relegate the protection of traditional
knowledge to an inferior plane."
The Minister thinks that the return of "consistency
to the center of international debate will be a valuable contribution
by this meeting of the UNCTAD."
Neoliberal globalization
doesn't tackle poverty – Brazilian Minister
The Brazilian Minister of Social Development and Hunger Alleviation,
Patrus Ananias, cited a study by the World Bank to affirm
that "the data on world poverty are alarming, making
it clear that the globalization we have witnessed in recent
years, based on neo-liberal policies, did not point out valid
paths to overcome the challenge of hunger, poverty, and social
exclusion in the world."
Ananias participated in the panel "Trade
and Poverty," part of the United Nations Conference on
Trade and Development (UNCTAD XI), which is being held this
week in São Paulo. In his view, economic and technological
development, "however necessary," are not doing
enough to create a "just" society.
Commenting on periods of economic growth in
Brazil between the 1930's and the 1980's, the Minister declared
that, even though they were significant, the country did not
link social development to economic growth. "This is
a concern of Lula's Administration, to consider social development
as a condition of economic development," he said.
Ananias presented some of the programs developed
in Brazil, such as the Statute for the Elderly, instituted
in 2003, and the Family Grant, which has been benefitting
around four million Brazilian families, or around 20 million
people. The goal by 2006, he said, is to cover all families
that are living below the poverty line.
Panitchpakdi: Negotiating Round must be defined
by July
The Director General of the World Trade Organization
(WTO), Supachai Panitchpakdi, warned today that there is a
risk of disequilibrium in both bilateral and multilateral
negotiations, if agreement is not reached by July on the set
of norms for the Doha Round -- the round of trade negotiations
initiated after the Fourth WTO Ministerial Conference in Doha,
Qatar, in 2001.
Rules should be defined by this date (July)
to take effect in January, 2005. "We can't miss this
window of opportunity," he pointed out, appealing to
leaders of developed and developing countries to reflect on
the adverse consequences of failure. "And, in this case,"
he added, "the poorer countries would be the greatest
losers."
In his address to the 11th United Nations
Conference on Trade and Development (UNCTAD XI), which is
taking place through Friday (18) in the Anhembi Park Exposition
Hall, Panitchpakdi observed that the 40th anniversary of the
UNCTAD coincides precisely with a critical juncture in the
Doha Round.
In his judgment, the last meeting, held in
Thailand, managed to restore confidence in the system of negotiations
to expand multilateral relations, "which was very constructive"
after the traumatic experience in Seattle (the American city
in which the WTO meeting in 1999 was marked by various anti-globalization
demonstrations). He expressed his hope that, at this meeting,
the Doha Round will be put on the right track, echoing declarations
made by the Secretary-General of the United Nations, Kofi
Annan.
Considering the progress already achieved,
he stated that three years ago Europe demonstrated an inclination
to reduce tariffs; "now people are talking about eliminating
them." He recalled that South-South trade, responsible
for around US$ 780 billion in business annually, has the potential
for an enormous expansion. The WTO director also insisted
that bilateral trade cannot substitute multilateral trade.
He informed that since the WTO meeting in
Cancun, Mexico, in 2003, he has traveled over 250 thousand
kilometers and held many meetings with Ministers, eight in
Africa alone, as well as six in Latin America and the Caribbean,
in the effort to define the negotiations, especially the most
controversial items, which involve the agricultural agenda.
For the Brazilian Minister of Foreign Relations,
Celso Amorim, there are surely chances to achieve success
in closing the package of rules. "We have a good chance
to have the framework of an agreement in July," he believes,
adding that some more complex issues could still be worked
out over the next six months.
Hunte: Brazil a Qualified
Candidate for UN Security Council
The president of the United Nations General Assembly, Julian
Hunte, considers Brazil to possess "an eminently qualified
candidacy" for a permanent seat on the UN Security Council.
In his opinion, changes in the international bodies are inevitable.
"Public opinion favors reforms, and the times in which
we live suggest that we cannot avoid them."
Hunte made these declarations at a press conference
during the 11th meeting of the United Nations Conference on
Trade and Development (UNCTAD XI), which is occurring in São
Paulo through Friday (18). "If the UN takes itself seriously,
this matter (the reforms) must be carried out," he concluded.
The UN Security Council is currently composed
of 15 members, five of them permanent, with veto power, and
the other ten elected by the General Assembly for two-year
terms. According to data from the Brazilian Ministry of Foreign
Relations, Brazil is the country that has served the greatest
number of times as elected member of the Council. Brazil currently
occupies the presidency of the organ.
For Hunte, the new format of the Council
has yet to be defined. The number of new permanent members
is uncertain. "It is not known whether it will be a country
from the Caribbean, Latin America, Africa, Asia, or Eastern
Europe. Perhaps one more opening will be created."
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