MercoPress. South Atlantic News Agency

Clash with the Bush administration.
Chilean inflation in nine months

Brazilian Minister of Foreign Affairs Celso Amorim accused United States of “threats” and insisting with a “very destructive” pressure to push forward negotiations for a Free Trade Association of the Americas.

The US government is not convincing the countries of the region but rather "making threats", and "we all know the fire power of the United States, in all areas", said Mr. Amorim during an interview with "Folha de Sao Paulo".

Last Friday Ambassador Ross Wilson, US main FTAA negotiator accused Brazil and to a lesser extent Argentina of not showing willingness to advance in the FTAA negotiations that were held in Port Spain, Trinidad and Tobago.

"Brazil, and Argentina declined to participate in a negotiation meeting for the FTAA project, and this was most disappointing", said Mr. Wilson.

Last week's Port Spain reunion was in preparation of the VIII FTAA ministerial round next November in Miami where representatives from the 34 countries of the Americas are scheduled to convene.

The Port Spain negotiations according to US delegates showed a clear division among those countries looking for a fully integrated FTAA, and on the other side Brazil, supported to certain extend by Argentina.

"The most disappointing was Brazil's lack of willingness to discuss major issues. During the many hours of discussions the Brazilian delegation remained silent, when each country was invited to express their views, priorities and possible limitations to the agreement", stressed Mr. Wilson.

Brazil has proposed that services, investments and government purchases are excluded from the talks and direct access to markets be considered top of the agenda.

The United States on the other hand is pressing for an "ambitious" accord that includes all these issues and eliminates from negotiations farm subsidies and disloyal competition legislation. Washington believes these should be dealt in the framework of the World Trade Organization, WTO.

Mr. Amorim said that Brazil supports FTAA but "without a straight jacket, neither positive nor negative", adding that "whoever wishes to adopt investment rules, very well, but if a country does not wish to do so, it must have the option not to adopt them".

During the Port Spain a group of thirteen countries headed by Costa Rica displayed a document, with a strong commitment towards an "ambitious and integral" FTAA, based on multilateral negotiations and free trade, but it was not supported by Brazil.

Mr. Amorim said that Brazil believes less in the documents put forward by Mr. Wilson and would rather accept recent statements from chief US Trade negotiator Robert Zoellick who admitted scaling down in time and content some of FTAA issues such as the rules on investments.

The FTAA initiative actively sponsored by the Bush administration should become effective January 2005, according to the official timetable.

Chilean inflation in nine months, 1,9%

Chile's Consumer Price Index was 0,2% last September with an accumulated 1,9% in the first nine months of 2003. The last twelve months index sums 2,2%.

This is the lowest September since 1990 and 1999, according to the Chilean Statistics Office release.

Food (-0,5%) and Home equipment (-0,3%) were particularly negative in September 2003, while increases were reported in Health, 1,2%; Transport 0,6%; Clothing 0,3%, Education and Leisure 0,2% and Others 2,3%.

The 0,2% reading was in line with analysts expectations in spite of the fact that September has traditionally been an "inflation prone" month. The drop in gasoline prices and the fall of the US dollar in the Chilean money market were instrumental..

Regarding October, analysts believe the index will be between 0,4 and 0,5%.