ECONOMY-AFRICA: Lula, Mbeki Speak Out Against Trade Protectionism

By IPS Correspondents Reprint | | Print |

Ferial Haffajee

JOHANNESBURG, Nov 10 2003 (IPS) - South Africa and Brazil came out guns blazing against global trade protectionism and also against the continued administration of Iraq by U.S. forces when Luiz Inacio Lula da Silva ended a visit here at the weekend.

“The Presidents indicated the unacceptability of developing countries being subjected to protectionist policies by developed countries,” said a South African Foreign Affairs official. They also said it was imperative that “the Iraqi people be able to assume control of their own affairs as soon as possible”. They called for multilateralism through the United Nations to prevail in resolving conflict.

Analysts say that Lula’s tour to five African nations – Sao Tome and Principe, Angola, Mozambique, South Africa and Namibia – last week was a symbol of Brazil’s nascent Africa policy and its growing alliance of the South with South Africa and India.

The India, Brazil and South Africa Dialogue Forum (IBSA) formed in June has become known as the G3.

The three countries will meet again next year to assess progress on joint development efforts including co-operation in the fight against HIV/AIDS and skills sharing to combat hunger and a lack of sanitation and infrastructure.

Ending his visit on Sunday, Lula said that southern nations also had to learn to play a wily trade game: his visit has given impetus to negotiations for a trade accord between the Southern African Customs Union countries and Mercosur, as well as increased bilateral trade between South Africa and Brazil.

To oil the trade, the countries signed two agreements: one on taxation and another on science and technology co-operation, bringing to ten the number of diplomatic agreements between them, with another eight set for signing in the short term.

Brazil, whose trade with Africa now totals five billion U.S. dollars, enjoys a trade surplus with South Africa garnered by growing imports of meat, mineral, fuel, machinery and mechanical appliances. In turn, Brazil is an important feeder country for South Africa’s growing tourism economy with five weekly flights between the two capitals already bursting at the wings.

In addition to strengthening trade ties with South Africa, a business delegation – comprising 160 persons – travelling with the Brazilian president also made contacts in Angola and Mozambique, two Lusophone nations which are among the fastest growing in Africa.

Brazil plans to invest 100 million U.S. dollars to improve Angola’s sugar cane industry, Brazil’s trade and development minister, Luis Fernando Furlan, said on Nov. 3.

“South Africa and Brazil are following the right track in a globalised world where the developed countries already have the way to play the game,” said Lula. Two aspects of multilateral governance came under particular scrutiny: the need to change both the international financial architecture and the representation to the UN Security Council.

Both nations have felt the turbulence of currency fluctuation and called for the “reform of the existing international financial architecture in order to achieve greater efficiency in addressing regional and national financial crises”.

A media release issued after their meeting also revealed that “Both Presidents consider that Africa and Latin America should have a permanent seat in the Security Council”, but diplomatic nicety prevented either from directly supporting the other’s bid.

South Africa, Nigeria and Egypt are all keen on a Security Council seat, whose current members are China, Britain, France, the United States and Russia. With the biggest population of Africans (and African descendants) outside of Nigeria (the continent’s most populous state), Brazil’s expanded foreign policy on the continent is vital, said Foreign Affairs minister Nkosazana Zuma.

To be precise, 70 million of Brazil’s 180 million inhabitants are of African descent.

A crucial aspect of the New Partnership for Africa’s Development (NEPAD) is the support of the African diaspora, both politically and financially. After last week’s visit, Lula has now been drawn into the circle of key NEPAD sponsors and ambassadors. It is hoped that this will enable support from the diaspora in Brazil.