Brazil Credits Stability to Refusal to Sign Treaty with US

São Paulo city, Brazil Celso Amorim, Brazil's Foreign minister, said that those countries which have signed free trade agreement with the United States are the most vulnerable to the consequences of the US housing and banking crisis, contrary to Brazil that has "diversified markets."

Amorim statement followed a question about Brazil's "scarce interest" in signing a free trade agreement with United States in the framework of the Washington sponsored Free Trade of the Americas Association, FTAA.

"There's a paper from the Center for Economic and Policy Research which argues that the US crisis will have an impact on all the countries of the Americas," said Amorim during an event sponsored by Brazil's Economic and Social Development Council which gathers ministers, presidential advisors, Brazilian President Luiz Inácio Lula da Silva, academics and the CEO of the country's main corporations.

"But the most severe impacts will be suffered by those economies most integrated to the United States, those that have free trade agreements with the US," he added.

"Markets diversification" has been the main foreign policy line of action for President Lula da Silva's administration revealed Amorim during his intervention in the open forum which was broadcasted live on government television.

Amorim said that trade with Mercosur partners (Argentina, Uruguay and Paraguay) has grown 320% under President Lula da Silva (2003) and currently is higher than with United States.

Trade with Latinamerica and the Caribbean soared 262% in the five years of the current administration, which makes the region even more significant commercially than the European Union.

"Latinamerica and the Caribbean are more important markets than the European Union. Mercosur has become a more important market than United States." said Amorim who added that these facts are essential to understand "why Brazil is less susceptible to a crisis," such as is happening in the US.

Brazil's Foreign minister also underlined that the package announced last Monday by US Treasury Secretary Henry Paulson giving the Federal Reserve greater regulatory and intervention powers over financial markets signal a clear change in the course of Washington's economic policy.

"It means returning to a vision which had practically disappeared in a time when the three dogmas essential for any economic policy were: liberalization, privatization and deregulation," he underscored.



  • Show Comments (7)

  • SteveK

    Look Out Allan
    The first part is for JOAO DA SILVA… Joao – muito obrigado pra sua convite, e boas vindas meu ao Brasil. Eu gosto Lula pra ele trabalhar com sua economia.

    Allan… I have relatives in various sectors of Brasilian industry. I talk to all of them and actually have seen & been to where they work.

    “if the real is down is only hurts the poor brasilians” – This statement you typed shows how ignorant you are.

  • João da Silva

    [quote]I am an American, who is moving to Brazil in a few years. [/quote]

    Why wait for years to move in? Flutter hearts never conquered an empire. The time is ripe to come over immediately and participate in PAC of our beloved Prez.

  • forrest allen brown

    look out steve
    ok look at this
    42% of defaulted loans are from illeagles in the US buying homes and cars they canot afford .along with CC debt ,and being taken off welfare , and ssi they have to stary paying for what they have bought .
    4% are from people looseing there jobs due to the same people as above .and not knowing how to manage money .
    8% is impluse buying of thing one cant afford but hope to .
    23% is bad banks and loan officers , not unlike the ENRON deal of a few years ago .
    the rest just chalk it up to people just pissed off at the US goverment for giving away the country .

    any trade has to favor one nation over the other , while brasil and most countries block US products by saying just no to imports or placing such a high tax no one but the ultra rich can afford them . the us is soon will be going for the
    equal trade law or a simpler term
    what ever tax you place on goods from the US we will place on your goods coming in , who will win that one .

    yes the dollar is down and it hurts the world if the real is down is only hurts the poor brasilians .
    but look at brasil land is up food is up cars are up fuel is up where is the savings there and what happens when it comes down ? all baloons pop . law of nature just when and where .

    Steve have you lived in brasil other than a few short vacations ??
    look very close and watch out for brasilians with big ideas for your money

  • SteveK

    Brazil’s refusal to sign treaty w/US
    I have to applaud the Brazilian government for rejecting the US treaty. I am an American, who is moving to Brazil in a few years.

    Hey Ch.C … Have you ever been to Brazil?
    If not, then you oughta take a trip down there and see how life is before you say anything.

    Here in the US, people are down and not very happy about the economy. In Brazil, they are working hard to create a Dollar-toppling economy. Shopping is up, new car sales are up, industrial production is up, Ethanol production is hot, new petroleum was discovered on Brazilian soil and the Dollar is going south against the Real. They do not need the US for any trade at all. I would not be surprised if the Real became stronger than the Dollar someday. That’s the direction they’re going now…

  • ch.c.

    Diversified markets ??????
    Ohhh yes…over 500 millions tons of sugarcane with a price per ton around the same depressed historical level than in 2002 when expressed in Your currency..
    – Same for frozen orange juice.
    – Same for coffee
    – Same for cotton
    – Same for grains prices.

    Be proud to have been brainwashed and blinded by your government leaders. this is exactly what they wanted.
    Lets face it some of the above commodities doubled in US$ prices while the US$ lost 50 % of its value.
    Where is the gain ???????
    Some other of the above commodities have not doubled in US$ prices but up only 20-30 % in US$ such as the orange juice….while the US$ lost 50 %.

    Sorry for you ignorants but when a currency falls by 50 % against another currency, prices should DOUBLE in the other currency………JUST TO BREAK EVEN.
    While in the meantime the input costs prices (fuel, seeds, transportation costs, machinery, fertilizers, fongicides, insectcides) have also had a big price increase… in the strongest of the 2 currencies (Yours).

    Ask any brazilian farmer when they made their largest overall profits and profit margins. In 2002-2003 or 2007-2008 ?????????

    Today your soyabeans farmers are getting less Brazilian currency…per sac… than in 2002-2003 while their inputs costs….SOARED even in Brazilian currency.
    You may also check Cosan, your largest sugar and ethanol producer. Barely making a profit TODAY while they made a much larger profit in 2002-2003.
    And you always sweared that ethano, is competitive to oil.
    Well, price of oil quadrupled in US$, price of sugar doubled in US$, and your ethanol is STILL NOT….competitive to oil !!!!! Not even in Brazil. Ethanol has not only 30 % less BTU per liter than gasoline/diesel thus needing 42 % more ethanol than oil (because you must go from 70 to 100 for equivalence) but your ethanol has also a lower tax rate than gasoline/diesel.

    Lets face it, despite Brazil pretends to be oil self sufficient, ethanol quantity more than needed, your pump prices are higher than in the USA addicted to imported oil and not enough ethanol.
    You are taken for a ride by your government….and you applaude them !
    More masochists than Brazilian, there are none on earth !

    And as to the cars you exports, you should say thanks to the foreign firms, not to brazilians carmakers. Or tell us and spell their names….if you can !

    😀 😉 😀 😉

  • hfdde

    It’s called Estados Unidos da Amerda

  • eh

    Do you know of any country that ever sided with the USA and didn’t get screwed?

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