Brazil recognizes China as market economy

Friday, November 12th 2004, 8:17 pm
By: News On 6

BRASILIA, Brazil (AP) _ Brazil recognized China as a market economy on Friday, a move that should make it easier for the two countries to do business. Brazilian oil giant Petrobras and China Petroleum and Chemical Corp. also agreed on a $1 billion deal to construct a natural gas pipeline.

Besides Brazil, China has so far received recognition as a market economy from at least 20 other countries, mostly developing nations. China entered the World Trade Organization in 2001 as a non-market economy.

Chinese diplomacy had eagerly sought that recognition, which makes it more difficult for China's trading partners to impose penalties on dumping of Chinese exports.

The recognition came after China on Friday agreed to sign two accords that will increase its imports of Brazilian chicken and beef, two of the most important objectives Brazil was after.

``Several bilateral agreements have been signed in areas that include trade, industry, organized crime, science, technology, energy and tourism,'' Brazilian President Luiz Inacio Lula da Silva said in a brief statement delivered after meeting with Chinese President Hu Jintao.

A $1 billion agreement signed between Brazil's oil giant Petrobras and China Petroleum and Chemical Corp. and China's Export and Import Bank calls for the construction of a natural gas pipeline from the South American nation's northern fields to its industrialized south. No details about the project were given.

Hu and an entourage of 150 Chinese businessmen began a five-day visit to Brazil on Thursday, hoping to boost bilateral trade and cooperation.

The Brazilian president also said the two countries had also signed an agreement for the launching of a new Chinese Brazil Earth Resources Satellite.