MercoPress. South Atlantic News Agency

Brazil: Hot News

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“Brazil is the most stable economy”; Serious rival for Lula; Petrobras record production

"Brazil is the most stable economy"

United States can't conceive a Free Trade Association of the Americas without the participation of Brazil, the country with the largest and most stable economy in the area. The kind words belong to Unites States Under Secretary for Latinamerica Otto Juan Reich who this week will be visiting Mercosur countries.

"Brazil represents half the economy and half the population of South America. United States can't ignore Brazil even if it wanted", said Mr. Reich.

In a long interview for a Brazilian weekly Mr. Reich also went out of his way to expel fears of Unites States full dominance through the FTAA, citing the example of Mexico.

"In 1994 Mexico was 26th. in world trade, and now has jumped to eighth and soon to fifth place, and this because it agreed to the North America Free Trade Agreement with Canada and the United States", stresses Cuban born Mr. Reich.

When asked about the coming October presidential election in Brazil, Mr. Reich denied Washington was backing any candidate and added that the countries with the greatest development are those that respect individual freedoms and have the least government intervention in the economy.

Talking about the recent Farm Bill signed by President Bush, Mr. Reich indicated that farm subsidies are contemplated in the framework of the World Trade Organization and that "they are considerably less than those of the European Union, 60 billion US dollars, actually three times more than the United States".

"In an ideal world subsidies would be non existent, but the world is not ideal", concluded Mr. Reich.

Serious rival for Lula

Another surprise in the Brazilian presidential campaign which was officially launched Saturday July 6th., ninety days before polling day Sunday October 6th.Opposition candidate Ciro Gomes jumped seven points in the latest opinion polls and now figures next to the ruling coalition candidate José Serra, although both behind favorite Inacio Lula da Silva who has been comfortably leading for the last six months..

Datafolha poll published this Sunday by daily "Folha de Sao Paulo" indicates that Mr. Gomes figures with just over 18% of vote intention and Mr. Serra dropped from 20 to 19%, while Lula remains far ahead with 38%, with a slight two points loss in last week.

Another poll from the Vox Populi Institute also gives both runner up technical parity in second place.

However since none of the leading candidates seems to muster the necessary 50% in the first round, in the play off polls indicate that Mr. Lula would beat either Mr. Serra or Mr. Gomes.

However the surge of Mr. Gomes is quiet revealing. Although Mr. Gomes considers himself a "socialist", he's described as a reliable candidate by the financial system and the business community since he was Economy Minister when current president Fernando Cardoso ran for president the first time and has had a responsible performance as governor of one of the northeast Brazilian states.

This is quiet a difference from Mr. Lula who in spite of his solid support in the polls, and Armani suits, has been unable so far, to convince the business community and markets which are reacting ever more nervously as he consolidates his lead. Even when promising to follow current open market and private sector oriented policies, Mr. Lula is remembered for his previous presidential campaigns when he played with the idea of ignoring Brazil's foreign debt burden and creditors.

Besides, charismatic Mr. Gomes in his late forties, has in his running ticket a union leader with a more sober background than Mr. Lula and strong support in Sao Paulo, the Workers Party turf.

Undaunted Mr. Serra who has never been able to consolidate above the 20 points line, remarked real polls are just beginning and only record but a precise moment of the campaign, adding "as happened with our national football team, we are going to win the October election".

Brazilian analysts consider tendencies will be clearer when the electronic media campaign begins in a month time with free time for all candidates.

Petrobras record production

Brazil's government owned oil company Petrobras reported a six months record production during the first half of 2002, with an average daily extraction of 1,51 million barrels, which represents a 14,3% increase over the same period in 2001.

Furthermore in June the company reached a daily production of 1,55 million barrels, breaking the previous May record.

Most of the oil, 82%, in Brazil comes from the Campos Basin offshore Rio do Janeiro, with a special boost beginning last December when the P-40 rig started operations in the Marlim field. In June P-40 had already reached a daily production of 150,000 barrels.

Another positive factor was the AB-65 well in the Albacora field also belonging to the Campos Basin.

According to the official report, the average production increase in companies with a turnover similar to Petrobras is 3% annually.