MercoPress. South Atlantic News Agency

US proposes trade union to compete with China

Washington called on western hemisphere countries to team with United States in trade associations to better compete with China and other world blocks.

US Secretary of Commerce Carlos Gutierrez currently on a four days visit to Brazil said in Sao Paulo that the region should join in trade associations that will help promote competitiveness and trade.

Standing next to Brazilian Development, Industry and Trade Minister Luiz Fernando Furlan Gutierrez said that Brazil, along with Mexico and other western hemisphere countries have a greater competitor in China than in the United States, underlining that Latinamerican dispute with Beijing export markets and foreign investment.

Mr. Gutierrez said that in recent years China had attracted more than 622 billion US dollars in foreign investment with exports totalling 762 billion in 2005.

He insisted that the US proposal to increase free trade agreements in the hemisphere was not ideological or political but pragmatic and business inspired.

Gutierrez made his proposal public in a speech before U.S. and Brazilian businessmen, adding that he intended to take advantage of his current visit to Brazil to speak out for more cooperation and trade between both countries and in the region.

"United States is proud to be Brazil's number one trading partner and biggest foreign investor", but "we feel there's much more room for expanding business links between the two countries".

Annual trade between the US and Brazil amounts to some 40 billion US dollars.

Gutierrez emphasized that hemispheric nations should be doing more business among themselves, because "without increased links the region's countries are losing to other block's potential business opportunities".