MercoPress. South Atlantic News Agency

Brazil/Argentina axis “will not yield to US”

Brazilian Foreign Affairs Minister Celso Amorim believes United States will not be signing a bilateral agreement with Mercosur because the Brazil/Argentina axis “won't accept just any offer”, contrary to what has happened with most other countries which have sat to the negotiating table with Washington.

In a long interview with the prestigious "Folha de Sao Paulo" Mr. Amorim ratified Brazil's interest in having access to the US market, "with or without" the Free Trade Association of the Americas (FTAA).

"Our target is a good negotiation with United States, be it FTAA or not, it's not essential".

Brazil and the United States are scheduled to resume FTAA talks in the coming weeks following the frustrating 2004.

Argentina's strong support for Brazil impeded last year progress in trade agreements with the US particularly in the opening of such vital areas as services.

Mr. Amorim insisted in his pessimism regarding new rounds with United States.

"We'll be faced with a permanent impasse. We're not going to accept rules on intellectual property and investment as long as there's no progress regarding agriculture subsidies", highlighted the Brazilian Secretary.

"We could advance faster if we concentrated in market access and less in general rules for the hemisphere. It's hard to find general rules on which we can all agree". Further on he underlined that Brazil is not against FTAA, "we can work together as long as the emphasis is in access to the US market".

Brazil's policy has been not to yield in other areas until the US is prepared to reduce farm subsidies. Washington insists with general rules for trade relations in the area.

In 2003 hemispheric countries in the framework of FTAA accepted the possibility of bilateral agreements with United States and they have progressed in several cases.

"I believe the US feels they can manage better concessions from other countries than from Mercosur because of the Brazil/Argentina axis and the fact we remain united in our position", revealed Mr. Amorim. FTAA is part of Brazil's agenda, "but not the only priority or obsession of the Brazilian government", pointed out Mr. Amorim.

Brazil is rapidly advancing to annual exports of 100 billion US dollars and has managed an "extraordinary diversification" particularly with industrialized nations which "now represent 49% of our overseas sales compared to 30% just a few years ago".

Finally Mr. Amorim admitted that negotiations with the European Union "could advance" in 2005 because of their willingness to extend and increase agriculture quotas. "In negotiations with the EU we're getting closer. This is not happening with FTAA".