MercoPress, en Español

Montevideo, March 23rd 2023 - 02:28 UTC



Mantega reiterates opposition to French plan for commodity prices regulation

Wednesday, February 16th 2011 - 22:53 UTC
Full article 3 comments
Rich countries should work to eliminate farm subsidies, said the Brazilian minister Rich countries should work to eliminate farm subsidies, said the Brazilian minister

Brazil reiterated opposition to a French plan to impose regulation on commodity prices, saying it could have “negative effects” on major suppliers such as itself. “Brazil is totally opposed to a mechanism of control or regulation of commodity prices,” Finance Minister Guido Mantega told reporters, reiterating a position he gave last week.

France has said it plans to use its chair of the G20 group of leading developed and developing nations to push for commodity price regulation in a bid to block what it considers speculation in the market of food crops such as grain and cereals.

Food prices around the world have surged in recent months, prompting some observers to say resulting unrest was one of the factors in the revolutionary zeal sweeping the Middle East.

France plans to hold discussions on the issue in a G20 finance meeting to be held in Paris Friday and Saturday.

Mantega said possible solutions to rising food prices could be that G20 countries encourage agricultural production in poorer nations, and that ”the rich countries could work to eliminate the subsidies they give their farm products”.

Commodities like sugar and soy beans are important exports for Brazil, and Mantega says the global price for many commodities shot up 40% last year.

Mantega says limiting commodity prices could actually cut the supply of the affected crops, and make price problems worse. He argues such regulations will keep farmers from responding to high prices by planting more hectares of expensive crops in the hope of making more money. Smaller plantings are likely to mean smaller crops, and tight supplies tend to boost prices.

Top Comments

Disclaimer & comment rules
  • briton

    ah you see, just like Argentina, you cant speak to the French, when they say something, they really mean you will comply , sometimes they still think they are in charge, they are arrogant beyond belief, very smart but arrogant, he refuses to speak English, this tells you something about the man, he is crafty slimy and looks for any chance to get what the French want, with a man like this, you have 3 choices
    1, comply comply comply
    2, stand up, it hurts him to look upwards,
    3, tell them to go fxxck,
    then sit back and wait, ? ive no idea what would happen then, ha ha

    Feb 16th, 2011 - 11:08 pm 0
  • xbarilox

    “Farmers worry over Common Agricultural Policy funding” and things have been getting worse since then and there's no CAP that can help you, you need South America.

    Feb 16th, 2011 - 11:47 pm 0
  • briton

    when dealing with the french, one must always carry
    1, french bread.
    2, french letters,
    3, know your onions .
    the french are the force in europe, and they want to come your way lol

    Feb 17th, 2011 - 09:52 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!