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Author`s name Timothy Bancroft-Hinchey

1st Summit EU – Brazil

On 4th July, the Ist Summit of the European Union-Brazil ended with a supper after the launching of a bilateral strategic partnership. Portuguese PM Socrates states that EU exteral policy is reinforced. On the table, Doha - the consequences for the developing countries with the South American Common Market. Portugal supports Brazil as a permanent member of the SC of the UNO and Socrates backed up President Lula regrding his criticisms of the subsidies practiced by the EU and U.S.A.

According to Portugal’s Prime Minister, Jose Socrates, the 1st Summut EU – Brazil heralded the success of one of Portugal’s main priorities, namely "The external policy of the EU comes out more enriched in depth, more enriched in coherence and more enriched in its scope".

The Doha Round of the WTO was one of the main subjects under discussion. Jose Socrates declared that the Lisbon Summit launched a "positive message" that the EU is comitted towards finding solutions. Backing the criticisms made by President Lula regarding the subsidies practised by the EU and U.S.A. in the agricultural sector, the Portuguese PM declared that it is necessary to find an equilibrium between greater economic freedom and development and greater space for assertion, for the developing countries".

South American Common Market (MERCOSUL)

For Portugal, this Summit opens the door for more open commercial relations between the EU and the South American Common Market, with Brazil performing the role as a turn-table between the parties. Jose Socrates highlighted the importance of the leadership of Brazil in the sector of biofuels. President Lula declared that after this Summit, what is well between the EU and the South American Common Market will continue well and what is ill, will be rectified.

Position of Brazil

President Lula of Brazil declared in the Summit that Brazil has "trump cards up its sleeve" in the negotiations with the WTO, and is aware that that even though there may not be a “dream” agreement for the developing countries, there will certainly be progress made. He mentioned the new leaders in the EU (Gordon Brown and Nicolas Sarkozy), affirming that he has confidence in a resolution of the questions between the developing countries and the EU/US axis about the question of free trade.

President Lula was clear in his aims: "We want the United States to lower their agricultural subsidies by 12 thousand million dollars and the EU to loosen markets in the agricultural sector. However, both the EU and the United States want Brazil to loosen its markets... but there should be a settlement based on each country’s GDP”.

Environment

For President Lula, the agreement signed between Petrobras and Galp Energy on 3rd July was important, for "the world is going to open itself to the market of biofuels". He also declared that this sector will constitute a useful means to fight endemic poverty in Africa and Central America.

Timothy BANCROFT-HINCHEY

PRAVDA.Ru