Brazilian president demands action from rich countries in global trade talks

Friday, January 26th 2007, 11:03 am

By: News On 6

DAVOS, Switzerland (AP) _ Brazilian President Luiz Inacio Lula da Silva on Friday asked rich countries to make tough compromises in long-struggling global free trade talks, or risk continued terrorism, organized crime and other ills caused by diminished hope in the world's poorest countries.

Silva said it was up to the United States and Europe to tear down the barriers to farm trade that poor countries claim are preventing them from developing their economies.

``If we wish to send a signal to the poorest countries on the planet that they will have an opportunity in the 21st century, it is necessary that the United States, Britain, France and Germany, that these countries should assume responsibility,'' he said.

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

His address, a wide-ranging speech that avoided the nitty-gritty of trade negotiation, came one day before top trade negotiators from Brazil, the U.S., the 27-nation European Union and two dozen other countries are scheduled to meet on the sidelines of the World Economic Forum in an attempt to find a way forward in the talks.

In a sign of increased political momentum, World Trade Organization Director-General Pascal Lamy met later Friday with Silva, British Prime Minister Tony Blair, South African President Thabo Mbeki and a few top negotiators. But similar meetings at other high-profile events have failed in the past to generate new offers.

Silva, a regular guest at the Forum, said he has talked to President Bush, French President Jacques Chirac and others about the necessity of completing the talks named after the Qatari capital where they were launched in 2001.

``I didn't talk to God, because I think he's done enough for us already,'' Silva added in a light touch to an otherwise serious speech that also criticized the U.S. for the war in Iraq.

The Doha talks have stumbled over clashes between rich and poor countries on slashing subsidies and tariffs, particularly for farm goods. The nearly incessant sniping between the EU and the U.S. also has repeatedly stalled progress.

``It is necessary that the U.S. and the EU reach an agreement because otherwise there's no agreement,'' Silva said.

Negotiators are trying to forge the blueprint of a deal before July, when Bush's authority to make trade deals that can be sent to Congress for a simple yes-or-no vote expires.

Without the so-called ``fast track'' authority, it would be much harder for any treaty to gain congressional approval in the U.S., the world's largest trading nation. Without Washington's inclusion, any global commerce deal would be meaningless.

On Thursday, a group of 65 of the most powerful business executives warned that failure to reach a new trade deal would undermine the world's economic growth and risk the dangers of protectionism.

The group _ which included Dell Inc. Chairman Michael Dell, Indian steel magnate Lakshmi Mittal and Coca-Cola Co. Chief Executive Neville Isdell _ called on all parties to make concessions.

Silva said Brazil was prepared to do its part after rich countries give ground. He said it is ``necessary that the businessmen and women of the world should participate actively in convincing the rulers of the developed countries that it is necessary to reach an agreement.''