EU, Brazil hold first summit in effort to deepen political, trade ties
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LISBON, Portugal (AP) - Brazil’s growing international stature has persuaded the European Union to offer Latin America’s largest country a political and economic alliance at a summit Wednesday.
The 27-nation bloc wants to make Brazil one of its “strategic partners” alongside China, India and Russia, the world’s three other major developing economies.
As well as seeking to foster more trade, a strategic agreement would allow the EU and Brazil to build a consensus on such international issues as trade, energy, climate change, United Nations reform and human rights, European Commission chief Jose Manuel Barroso said in a recent report.
“By proposing stronger ties, we are acknowledging Brazil’s qualification as a key player to join the restricted club of our strategic partners,” Barroso said.
Officials, though, say they cannot predict when a deal might be signed — an indication the abiding differences that have held up a global trade agreement could also spoil Barroso’s plan.
Brazilian President Luis Inacio Lula da Silva, who has championed the cause of developing nations at world trade talks and stood firm against European demands, is to study the proposal and later make his own recommendations on how it might work.
The main obstacle to a new global trade pact has been agriculture. Developing countries want the U.S. and the EU to cut back on their farm subsidies. Meanwhile, the U.S. and EU are pushing Brazil, India and others to open up their markets for industrial goods and services.
Also, trade talks between the EU and the five-nation Latin American Mercosur bloc, whose dominant member is Brazil, broke down in 2004.
The EU and Brazil have a limited bilateral cooperation agreement signed in 1992. The EU is Brazil’s main trading partner, while Brazil is the bloc’s main trading partner in Latin America and its 11th worldwide.
Broadening the scope of their ties is one of Portugal’s main goals for its six-month presidency of the EU, which began Sunday. It hosts the one-day summit in Lisbon, the capital.
Brazil, one of the emerging economies invited to last month’s summit of the Group of Eight industrialized countries, is Latin America’s biggest economy. Its gross domestic product expanded 3.7 percent last year and is expected to surpass 4 percent this year.
The EU already holds annual summits with China, India and Russia. Together with Brazil, the four countries account for about one quarter of world gross domestic product. Analysts say that share could rise to as much as 45 percent by 2025.
Silva is due to hold talks with Barroso and Portuguese Prime Minister Jose Socrates. EU foreign policy chief Javier Solana and European Trade Commissioner Peter Mandelson are also attending, among other senior officials.
Following the meeting, Silva will dine with French President Nikolas Sarkozy, Spanish Prime Minister Jose Luis Rodriguez Zapatero and Italian Premier Romano Prodi. On Thursday, he makes an official visit to Brussels.
Filed by Maria Robson under Multilateral Trade, Development, Climate Change, Energy and Nuclear Safety, Democratization and Human Rights, United Nations Reform