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Brazil's Lula pushes trade as development issue
POSTED: 2:27 p.m. EDT, January 27,2007

Brazilian President Luiz Inacio Lula da Silva has urged rich countries to help the developing world by making concessions in the Doha round of global trade talks.

Speaking at the World Economic Forum in the Swiss resort of Davos, he linked trade and development to the fight against organised crime and terrorism, urging Europe and the United States to settle their differences in the World Trade Organisation talks.

"If we wish to send a signal to the poorest countries of the planet that they will have an opportunity in the 21st century, it is necessary that ... (rich) countries assume responsibility for developing a pact so we can reach an agreement in the Doha round," he said during a speech to business leaders.

"If we want to avoid terrorism in the world and growth in organised crime, I believe that the Doha round is one of the paths that we should follow."

The round of talks launched in the Qatari capital, Doha, five years ago was suspended by WTO Director General Pascal Lamy last July following nearly five years of acrimonious meetings pitting the EU, the United States and the emerging countries against each other.

The talks, which are aimed at breaking down trade barriers for the benefit of the poor, is deadlocked because of differences between the EU and US on farm issues and discord between rich and poor countries about trade in industrial products and services.

Lula said that Brazil was willing to make concessions and would persuade the Group of 20 (G20) emerging nations to accept a deal -- but only if the EU and United States settled their dispute over farm trade first.

The Europeans are demanding greater cuts to US farm subsidies, while the US insists on reduced EU tariffs which protect Europe's markets from foreign imports.

"It is necessary that the US and Europe reach an agreement, because otherwise there's no agreement," he said.

About 30 trade negotiators are to meet on the sidelines of the Davos forum on Saturday, including European Trade Commissioner Peter Mandelson, US Trade Representative Susan Schwab, Indian Industry Minister Kamal Nath and Brazilian Foreign Minister Celso Amorim.

From:AFP
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