Brazil Rushes to Heal Wounds After WTO Talks Collapse in Geneva

Argentina and Brazil presidents, Kirchner and Lula Brazil's Foreign Affairs minister Celso Amorim believes that Mercosur must do its utmost to find a common position and talk as an only voice following the aftermath of the recent Doha round effort in Geneva where Brazil and Argentina stood on different sides.

Amorim statements not only follow the Geneva global trade talks collapse but are also an anticipation of Brazilian President Lula da Silva's official visit to Argentina next Sunday. Both countries are the main axis of Mercosur.

Talking with the Brazilian press Amorim said it was a "paradox" that Mercosur has a common united position in the Free Trade of the Americas Association negotiations and with the European Union, but "in the WTO we are incapable of such unity."

"If we consider such meeting (of WTO in Geneva) as a lesson, I agree, we must work to achieve a common, united position," underlined Amorim who described the different position with Argentina as possibly "a legacy of the past when we were divided and we all spoke for ourselves."

The WTO ministerial Geneva meeting contention had Brazil on one side, and Argentina, China and India on the other, leading emerging countries rejection of a last minute deal worked out by WTO head Pascal Lamy to unlock the talks.

Argentina's main negotiator Alfredo Chiaradia in Geneva admitted that the different positions with Brazil "generate tension inside Mercosur."

Amorim who supported Lamy said Brazil did the "right thing" and if negotiations had advanced "would have done everything possible to contemplate Argentina's interests."

WTO talks broke down when developing nations such as India, China and Argentina were unable to agree on measures to protect farmers from emerging economies. The measures would have imposed tariffs to protect farmers in case of a sudden surge in goods on the market or a drop in prices. United States was adamant in demanding an elimination of any possible transitory tariffs.

Both India and China are believed to be fearful of their rural populations which have so far been left out of the economic success of urban and industrial areas.

"There was certain intransigence on both sides," said Amorim referring to United States and India.

However, "Brazil didn't distance itself from India or Argentina," underlined Amorim. "In our position we could not come out as total hostages of the Argentine stance in a crucial moment for the overall negotiations. Besides Brazil could not justify rejecting a draft which we considered acceptable."



  • Show Comments (13)

  • Double-Dot

    [quote]Idiots generates more idiots.[/quote]

    Quote of the week. πŸ˜‰

  • João da Silva

    [quote]Yessssss…you already should have nationalized Petrobras, but also Cia Vale….right at their top ….. a few months ago…using Ricardo common sense and long term view but changing his long term view twice a year !
    It would have been already great….for the shareholders, foreign or locals !!!!!!![/quote]

    Last time I checked about re-nationalization of Petrobras article, Ricardo was inundated with questions from a Chinese blogger! I did not want to participate!!!

  • ch.c.

    Continued for Joao !
    Concerning the nationalizations :
    Should developed nations nationalize NestlΓ€Ζ’Β©, Syngenta, Toyota, VW, BMW. IBM, WalMart, Exxon. British Petroleum because they are national treasures making tons of profits ???? And also UBS and Credit Suisse in 2006… right at the top…before their collapse ?

    Yessssss…you already should have nationalized Petrobras, but also Cia Vale….right at their top ….. a few months ago…using Ricardo common sense and long term view but changing his long term view twice a year !
    It would have been already great….for the shareholders, foreign or locals !!!!!!! πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

    I bet that his long term view will change near the next bottom, with the analysis that selling the company again will be great to obtain financings for the oild fields developments.
    I just remind you, if you are not aware, that Petrobras will need to invest US$ 240 BILLION, to develop only the TUPI field, containing from 5 billion UP TO 8 billion barrels of oil, and of these UP TO 8 billion barrels, not 100 % belong to Petrobras, but also to non brazilian firms…..if you did not know.
    Ohhhh and the US$ 240 billion needed is only for Petrobras oil share, not for the percentage owned by the other companies.

    Not over, you also could nationalize as many companies in different industries as it pleases you, such as Chavez did and continue to do. Now he will nationalize Banco Santander Venezuelian branches.
    Somewhat funny that since he became a dictator his oil production went DOWN.
    Somewhat funny that despite his country large oil exports at a time of record oil prices, his country still has so much poverty.
    Somewhat funny that despite his insults towards America, he still sells most of his oil to them.
    Somewhat funny that outside pumping oil, and despite the wealth oil generates, the country is still unable to produce enough food despite he has a similar soil and climate than Brazil.

    No doubt Brazil doesnt count Venezuela also as owner of the Amazon…for the sharing of the US$ 20 billion needed from developed nations…to preserve the Amazon !!!!

    Idiots generates more idiots. Just look at South America populists and not so clever people such as Chavez, Lula, Fernandez and…..Ricardo…to name just a few !!!!


  • ch.c.

    to J&J…Jay and Joao !
    When a high level official from a country, developed or not, is pronoucing such insults he should be fired on the spot by his own government, and the government should present excuses to the insulted countries, but he wont be fired….in Banana Republics such as Brazil, Zimbabwe or your cousin Venezuela.
    Just imagine if Bush or a high level american official would have said it against….Brazil !!!!!

    Concerning Venezuela, it did not enter Mercosur through the back door in Brazil, but through the most friendly accolade and welcome from Bin the Crook, and the Mercosur Bimbo Fernandez (not Mrs Kirchner……if you dont mind. smiles).Kirchner is of course the pimp. By the way if you look at the history of MR Kirchner, you will see that the state he was governor, was the most corrupted in Argentina.

    Yessssss…..South Americans….would be unhappy without corruptions at all levels, from bottom to top.
    Therefore voting for a corrupted politician is the essence of South Americans lifes. Everyone vote for the party which promises
    corruption rights and impunity, if one vote for them. It is simply said more diplomatically.

    In my view, the back door was more in Venezuela, since Lula brother : Chavez has unilaterally decided to enter the Mercosur, without asking his citizens through a national vote. Wellll……another proof that Chavez acts like a dictator in a Banana Republic.
    I just remind you that to enter the EU, new nations must habe a national vote. And when a national vote is negative, the government must abide by the vote decision. Another proof that Venezuela is similar to Zimbabwe in many many ways.
    Funny that Bin the Crook, if democrat he would be, opened his arms as wide as he did.

    For your info in my country, the government was always in favor of joining the EU, after negotations of course.
    So far 2 national votes, and 2….Niets !!! Here we the people decide of our future. And we can change a law as it pleases US not the government. We simply lauch a referendum. We can do that for national or states legislations. We simply collect signatures in the street (TRUE). The number of signatures required are relatively low even in the percentage. When the number is sufficient, our law states that “the problem” must be then…BE VOTED AND RESOLVED….by the citizens.
    An interesting example : Geneva as a state always had the country highest imcome tax rate. But on the other hand provide the most social coverages. It ended in the referendum : should geneva reduce their taxes ? doing so would of course oblige the state to reduce the social coverages.
    Few expected the vote results : NO, Geneva must not reduce their taxes.
    Same for joining the EU, the national government was sure the yess would prevail. TWICE we have proven them wrong.

    πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

  • João da Silva

    [quote]Did I see and hear a Representative from BRAZIL call the First world nations NAZIS?[/quote]

    I saw and heard it loud and clear!


    Did I see and hear a Representative from BRAZIL call the First world nations NAZIS? So every one got mad and took there toys and went home.

    Brazil seems to have fewer toys than the others?
    You should not throw rocks when you live in a glass house.
    Well even when you do not have a house.

    Play nice the big boys only need the other big boys.

  • João da Silva

    We are so glad that you are back!

    [quote]No. I disagree.[/quote]

    The main objective of my original comment was to trick you into expressing your blunt comments πŸ˜€

    Stay tuned. I am re-reading the article of RicardoΓ€β€šΒ΄s and there is a commentator from China who is against any re-nationalization.

    You staying in Geneva during the week end or traveling?

  • ch.c.

    Continued…for Joao !!!
    a few more typical examples of how emerging nations are closed and far more ticky one can even think of :

    – Mexico, an oil producer and exporter, has the cost of electricity FAR HIGHER….than in the USA…an oil importer !
    And to my knowledge electricity is NOT subsidized…in the USA. And this despite their retail gasoline price is US$ 2,70 per gallon against over us$ 4.- in the USA.

    – in Mexico, the costs of appliances imported from China, are FAR MORE EXPENSIVE than the same Chineses goods sold in the USA. And also to my knowledge appliances are not subsidized in the USA.

    – As I already wrote a few times, In Brazil you have the world most expensive Ipods and Iphones mostly made in Asia.

    Who is then the most open for trades ? Emerging nations or developed countries ????

    Ohhhhh…..and to my knowledge WTO means World TRADE Organization and not World Agriculture Organization Only !!!!
    WAOO doesnt exist yet ! The UNSURE trade block should create it ! πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

  • ch.c.

    Joao !
    No. I disagree.
    ALL emerging countries want the developed nations to reduce their trade barriers, while giving NOTHING in return, despite most emerging nations already generate most of their trade surplus with developed nations.
    And emerging nations are of course in total disagreement between themselves. Do you imagine India accepting a flooding of Brazilian agriculture or Chineses goods ? Of course not.
    Do you imagine Brazil accepting a flooding of Chinese goods ? Of course NOT.
    Despite the Chineses textiles export to Brazil stood at around US$ 240 MILLIONS, representing ONE per cent of Your textile industry, Brazil said it was TOO MUCH !!!!
    Should then the EU, for example, be right to say to Brazil, than your food exports to the EU should not be more than ONE percent of the EU production ?
    Should the EU say to China and Vietnam, that their textiles exports to the EU, should be reduced to ONE percent of the EU production ?
    Same for shoes. 60 % or so of shoes sold in the EU come from China and Vietnam. Should we say they should reduce by a factor of 60 times ?????? Or by 98 %….in fact ! smiles.
    Ohhh and same for cars. Why Brazil and most large emerging nations FORCING AND OBLIGING car makers to produce in their country, instead of allowing the free market……as YOU say ???? No doubt many countries such as Brazil would have cheaper cars if
    produced in the EU….or in….CHINA !!!!!

    Another aspecz is the agriculture subsidizes. Emerging nations critizice the developed nations, but not their own….agriculture subsidizes…of course. India is subsidizing immensly their farmers. At timesm such as recently in India and Thailand, they cancelled
    billionssss US of debts to their farmers. Funnily….at a time of HIGH agricultural prices.
    What emerging nations would say if the EU, Japan and the USA would cancel some farmers debts ????
    They would shout of course…of how unfair it is !!!!

    Same for oil ! 70 % of the world population receive subsidized oil prices. None of these 70 % are in developed nations.
    Is it acceptable that in Venezuela and Iran (the most obvious examples) gasoline is sold at less than US$ 20 CENTS…PER GALLON, of course well well well wellllll BELOW the production costs ! Is this not….ALSO AGRICULTURE SUBSIDIZES ??????
    or said otherwise how could they produce agriculture WITHOUT OIL…and transport these grains, foods, meats…WITHOUT OIL ?????
    Same for China, an oil importer, but selling it AT BELOW imports and local production costs.
    Dont you believe that this is unfair ?????
    Better yet, it is not only the farmers benefiting from their government oil subsidizes but ALL their manufacturers outside of agriculture and ALL their consumers….with a car/SUV/trucks….by definition.

    In conclusion, you are getting (YOU ALREADY ARE IF YOU PAY ATTENTION) to be hit IN your own tricks.
    Yessss funny that despite the high agricultural prices…..most famers AND those in agribusiness in emerging countries….ARE NOT MAKING ANY PROFITS…OR VERY SMALL AT BEST !!!
    Just a few examples :
    – JBS announced their 4th consecutive quaterly LOSS….despite record high meat and cattle prices !!!
    – Cosan just announced a quaterly.LOSS….having already had a loss for 2007 !
    – Agrenco, a stock lauched last year is DOWN 88 % from its initial price.
    – Despite the cattles shortage for slaughters, your cattles farmers are NOT making money.
    – Despite the record high grains prices, most of your farmers are making at best…a small profit.

    Yessssss…..Viva the high food prices !
    No doubt most brazilians ENJOY paying more more and more.
    And last but not least :
    – Strange that the countries with the highest inflation are not those importing the record high priced commodities but those…PRODUCING THEM !!!!!!
    – Check by yourself, most companies in developed countries supplying the inputs to farmers in emergIng markets are making….RECORD PROFITS….and their shares prices are at near record HIGH….and up 500 TO 1500 % …DURING THE LAST FIVE YEARS.

    Yessssss….you should produce more. Make the grains prices even higher. Your companies wont earn more and our companies will continue to SHINE !!!!!!

    Yesssss…we immerge into your tricky game and caress YOUR neck and tell yopu how smart YOU ARE !!!!!!
    The more we caress your neck, the more you caress your navel !!!!
    And the winners remain…NOT YOU !!!

    Just think about it !

  • João da Silva

    [quote]After all the cash spent by Venezuela (in bribes) to support the election or Mrs. Kirchner, and after Venezuela stormed into Mercosul through the back door, I doubt Argentina would consider leaving the Organization.[/quote]

    VenezuelaΓ€β€šΒ΄s entry into Mercosul has not been approved by our senate.So it is technically not a member, yet. As for Argentina, you are right about their remaining in the Bloc.

    Still I am wondering what made Brazil to give a 180 degree turn from its original stance. Celso Amorim really talked tough two days before the start of the Doha round of talks and changed his position on Thursday!

    Ah, did you read about the news on the decision of Chavez to re- nationalize the state bank?


    After all the cash spent by Venezuela (in bribes) to support the election or Mrs. Kirchner, and after Venezuela stormed into Mercosul through the back door, I doubt Argentina would consider leaving the Organization.

    As for the US, I’d hardly imagine it would contemplate establishing any serious Trade Pact with China! Here in the US, we are losing a fortune in a shameful deficit with the growing Asian Giant… Rather, the American position is to attempt to recover some of its lost influence in the Western Hemisphere not only through Mexico, its firm NAFTA southern partner, but through Colombia – its only remaining ally in South American, and by luring Chile and the Central America (without Nicaragua of course) into the fold…

  • João da Silva

    An additon
    Sorry, I forgot to include the Mexicans and the Canucks πŸ™‚

  • João da Silva

    [quote]The WTO ministerial Geneva meeting contention had Brazil on one side, and Argentina, China and India on the other,[/quote]

    Soon soon, you will find China, India, Chile and Uruguay forming another bloc of trading nations, along with U.S. and E.U., thanks to our wonderful diplomacy.

    Any comment Dr.Ch.c ? πŸ˜€ πŸ˜‰ πŸ˜‰

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