NEWS FROM BRAZIL supplied by SEJUP (Servico Brasileiro de Justica e Paz).
Number 495, September 5, 2003

Brazil Takes a Hard Line in FTAA Negotiations

The U.S. Congress recently released a study saying that the odds of the
negotiations for the Free Trade Area of the Americas (FTAA) being completed
by the proposed deadline of 2005 are "precarious."  The study puts most of
the blame on Brazil, who it calls a "reticent and difficult commercial
partner."  This evaluation is in response to the fact that the new
Brazilian government of Luiz Inacio "Lula" da Silva has taken a harder line
in its negotiations of the FTAA.  In addition, Brazilian social movements
are increasing their protests against the trade accord which they see as an
attack on Brazilian sovereignty.

Brazil's offer for the negotiations were very cautious.  Products were
divided into four categories with different time periods for lowering
tariffs.  Twenty percent of the products would have zero tariffs
immediately; 3% in five years; 16% in ten years and 61% in more than ten
years.  In addition, there are safeguards for emerging industries and to
assure balance of payments.  Brazil's offer also set a condition on the
elimination of non-tariff barriers and subsidies (especially in
agriculture) by the U.S. In July, the Brazil's External Relations minister,
Celso Amorim, released Brazil's new positions in relation to the FTAA
negotiations.

Brazil wants to negotiate in three "tracks".  The first track would be in
negotiations of the Mercosul (Brazil, Argentina, Uruguay and Paraguay) and
the U.S., called "4+1."  Here, it wants to negotiate market access and, in
a limited manner, services and investment.  In the second track (the FTAA
negotiations) it wants negotiate themes like solution of controversies,
special treatment for developing countries, compensation funds for poorer
countries, sanitary regulations and trade facilitation.  In a third track
(the World Trade Organization (WTO) negotiations), more sensitive issues
like intellectual property, public services, investments and government
purchases would be treated.

This "balkanization" of the negotiations, as one U.S. negotiator as called
it, is in many ways, a reaction to a number of recent U.S. actions.  First,
its initial offer for the FTAA in February of this year divided Latin
America in four regions with varying tariff levels.  The least generous
levels were reserved for the Mercosul.  Ninety-one percent of Caribbean
products would have a zero tariff in 2005, while only 58% of Mercosul
products would have free access.   In addition the U.S. recently signed a
bilateral trade agreement with Chile and is rapidly negotiating an
agreement with Central America.

Meanwhile, Brazilian civil society is planning increasing mobilizations
against the FTAA.  On September 7th, Brazil's independence day, the Cry of
the Excluded marches will take place throughout the country with a theme of
"Take your hands of our land"  a reference to the FTAA and the recent
decision of the government not to rent a military base in northern Brazil
to the U.S.  On September 13th, people will return to the streets as part
of the worldwide protest against the WTO as it is being negotiated in
Cancun, Mexico.  And finally, on September 16th, the Jubilee South/Brazil
campaign, a coalition of hundreds of social movements, unions, churches,
and student organizations, will turn in a petition signed by millions of
Brazilians demanding an official plebiscite on the FTAA.  Last year, this
same campaign organized an unofficial plebiscite which mobilized over
150,000 people who collected over 10,000,000 votes.  Over 98% of the voters
said that Brazil should not enter the FTAA.

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