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Brazil and US Industry Join Forces to End Doha Stalemate

Brazil FIESP's president, Paulo Skaf Brazil FIESP's president, Paulo Skaf

Brazil FIESP's president, Paulo Skaf Brazil and United States manufacturing industries agreed on Friday in Sao Paulo to join efforts in achieving a reduction of trade barriers, which so far have frustrated a long expected global free trade agreement.

The US National Association of Manufacturers, NAM, and São Paulo's Federation of Industries, FIESP, said they were "united in the objective of liberalizing world trade and building a stronger trade environment through the successful negotiation of the World Trade Organization (WTO) Doha Development Agenda. We believe the attainment of this objective will benefit both our nations, as well as the world as a whole."

Following two days meetings the organizations agreed to further this objective through the formation of the bilateral Brazil-U.S. Industrial Dialogue, a joint initiative with a special focus on finding solutions for pending issues in the multilateral talks.

"The objective of the Industrial Dialogue is to encourage and support the Brazilian and US governments in increased efforts to obtain the balanced and ambitious Doha Round agreement sought by both FIESP and the NAM, and to do so within a short period of time," said a joint release signed by NAM's John Engler and FIESP, Paulo Skaf.

"The Industrial Dialogue will also explore advising on complementary actions in terms of investment opportunities, trade adjustment measures, domestic reforms – with an emphasis on taxation, discussion of common interests with regard to the global challenges presented by China, combating intellectual property piracy and counterfeiting, and other matters of mutual interest".

The manufacturers private initiative was launched while representatives from the world's leading trading powers, including Brazil and the US, are meeting in India in an attempt to re-launch the Doha Round to liberalize global trade and which remains stalled and has missed several self imposed deadlines.

However Brazilian manufacturing industry has been cautious about the current global trade negotiations that include a significant reduction in manufactured goods tariffs, which is the target of United States and other highly industrialized nations.

Brazil has spearheaded developing nations in the global negotiations but demanding greater access to the US and European markets for agriculture commodities, where they are highly protected with quotas and subsidies.

NAM president John Engler said both organizations had agreed in the São Paulo meetings to lobby their governments for a quick result in global trade liberalization.

"FIESP and the NAM believe that this is an important moment to break the Doha Round stalemate of the last several months. To achieve this end, both business organizations will intensify their efforts to work with their governments and to engage in close contact with each other to advance the resolution of the issues that are pending in the Doha Round".

The release also underlines that "FIESP and the NAM acknowledge that the ambitious Doha Round outcome they seek also depends on further movement from other key players in the negotiations. Therefore the two organizations will work to engage private sector representatives throughout the world to encourage them to persuade their governments to improve their offers in the Doha Round, particularly focusing on industry representatives from Argentina, Canada, China, the European Union, India, Japan and South Africa."



  • Show Comments (8)

  • AES

    What a formidable economic force Brazil and the U.S. would make.

  • conceicao

    Beef wholesale prices in the U.S. up about 4% on average each of the last three months from previous month due to spiraling corn prices tied to the domestic ethanol subsidies. The government’s
    response embodied in yesterday’s Conoco – Tyson announcement appears to be to try and provide some relief to the cattlemen by extending an existing biofuel tax credit to the production of biodiesel derived from slaughterhouse leftovers. Why not just end all this economic pornography and let in the one known biofuel currently price competitive with petroleum on a stand-alone non -subsidized
    basis: Brasilian ethanol.

  • u.s.guest

    Well Said Jack Orion !!!
    Brazil # 2 High Violator of U.S. Immigration Laws…Brazil,s Illegal Alien Traffickers Operate with impunity….

  • Jack Orion

    Maybe this is just a fallacy.

    The Brazialian Government shouldn’t be trusted, no offence to the cidadoes. They are lazy and and are only in it for themselves. The Politicians are a bunch of scumbags lying thieves. They think they own the country.
    Just look at the plight of the people. Treated like rubish.
    When the King of Portugal gave Brazil its independence it gave the land to all of the people but a handfull of smart asses took it for themselves and have the hide to tell the populace that all the problems are because of the Portuguese.
    And every time they blow it, because of their incompetence etc. they blame someonelse, like its all Americans fault.
    Wake people of Brazil, hold the bums to accountability. Put them in jail or better even send them to China to see how corrupt polticians are dealt over there.

  • conceicao

    This is an excellent approach to moving things forward in my opinion. There are a lot of different interest groups on both sides and mixing and matching interests across the two economies could
    surface soloutions both governments could work toward. Consider as an example the U.S. National Cattlemen’s Beef Association’s recent resolution calling for the phasing out of the 54-cent / gallon
    tariff on Brasilian ethanol.

  • mutual respect first…

    Everything is possible…
    But the US has to be able to find Brazil in the map first…and I don’t mean geographically.

  • Forrest Allen Brown

    years of mis trust must be over come
    i beleive it would all be in the QC
    to keep standards in place for all to be equail

    we need to try to put the industrail might of this hemisphere working togeather .
    beat china , EU and all comers

  • Ric

    They would indeed, and were once closer in most areas than they are today. Ideology is a factor, and so is the tendency of the US to not take Brazil seriously, and the inevitable Brazilian suspicion that they are being exploited. Perhaps a bilateral, crass pragmatism will emerge upon recognition that they have several challenges in common that could better be addressed together.

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