"change the geography of trade"
DAVOS: New Geography Trade Policy Spurs Brazilian Exports, Says President Lula
Brazilian President Luiz Inacio Lula da Silva on Friday outlined his policy to "change the geography of trade" at a plenary session of the World Economic Forum’s Annual Meeting 2005.
Aimed at boosting his country’s exports to formerly minor and non-traditional markets, the policy helped Brazil register record exports, US$ 96 billion, and a record trade surplus, US$ 33 billion, in 2004. President Lula has visited three dozen countries since he took office two years ago. Brazil also helped lead the G-20 coalition of nations, including China and India, that was formed as a counterweight to rich countries in the World Trade Organization negotiations. "We established a policy of similarity, focusing on countries in circumstances comparable to ours," said the president.
"When we announced our policy, everyone thought we were going to do battle with the European Union and the United States," he said. "But there is no reason for us to fight with the EU, an important trading partner, or with the US, our single most important trading partner."
Lula traced the logic behind the "new geography" strategy to his days as a labour leader. "We didn’t adopt this policy out of arrogance but because of something I learned in the union," he said. "If you are in tough negotiations, it doesn’t help to whine to your opponent. You have to negotiate from a position of strength."
Once a timid trader, Brazil is being transformed into a serious exporter, Lula said. "With this vigorous policy, we have demonstrated that we’ve changed the doctrine under which Brazil only exported its excess production," he stated. "Never before has Brazil combined strong exports with a strong internal economy."
Luiz Fernando Furlan, Brazil’s Minister of Development, Industry and Trade, has announced a projected increase in exports of over 10% this year. "We’re going to work to go beyond the projected US$ 108 billion in exports this year," said Lula. "I’m more optimistic than Furlan."
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