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Will the US Ever Comply with the WTO? Brazil Wants to Know. |
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Written by Ivan Richard
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Friday, 18 November 2005 |
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The United States has still not complied with a World Trade Organization ruling that its cotton subsidies are illegal and should be halted. "This weakens WTO credibility," declared Brazilian Minister of Agriculture, Roberto Rodrigues, yesterday.
Rodrigues pointed out that the farm sector is extremely important for Brazil and internationally competitive.
What Brazil wants is for rich countries to reduce subsidies that distort markets so that developing nations can compete in the farm sector on a level playing field.
Last year the Brazilian farm sector accounted for 30% of GDP, over 40% of all exports and 30% of the country's jobs.
Lula Criticizes EU
President Luiz Inácio Lula da Silva once again criticized European countries for resisting farm sector subsidy reductions. Lula declared that without such reductions poor countries have no chance to grow and compete on world markets.
"When it comes to agricultural subsidies, France has a difficult time in dealing with the problem. In fact, the French problem is not economic, it is political. French farmers are a big constituency and no one wants a conflict with them," said Lula, who announced that he had sent a message to British prime minister, Tony Blair, requesting his assistance in getting subsidy reductions in rich countries, especially in the EU.
According to Lula, the EU should lead the way in significant worldwide farm subsidy reductions. "They have the highest subsidies in the world by far and need to show that they are willing to open their markets by making reductions," said the President.
ABr
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Your agriculture sector is also highly subsidized. Your agribusinesses and farmers have loans from the BNDES with interest rates from 6 to 11 percent when regular businesses must borrow at 40 to 60 % per year.
Also, most of these BNDES loans go to large agribusinesses companies and only a minorty to farmers.
If international competition is so important for you, why dont you open, as we demand, your borders to manufactured goods and services ?
Your overall trade balance is already highly in your favor with all developped nations and the developing nations too. Should you want more and give nothing in reciprocity ?
You enjoy competition ? Fine ! Lets do it fairly in all industries, not just in those you know are competitive.
Fairness could be so simple. .