MercoPress. South Atlantic News Agency

US/Brazil manufacturers agree to lobby for global free trade

Brazil and United States manufacturing industries agreed on Friday in Sao Paulo to join efforts in achieving a reduction of trade barriers, which so far have frustrated a long expected global free trade agreement.

The US National Association of Manufacturers, NAM, and Sao Paulo's Federation of Industries, FIESP, said they were "united in the objective of liberalizing world trade and building a stronger trade environment through the successful negotiation of the World Trade Organization (WTO) Doha Development Agenda. We believe the attainment of this objective will benefit both our nations, as well as the world as a whole". Following two days meetings the organizations agreed to further this objective through the formation of the bilateral Brazil-U.S. Industrial Dialogue, a joint initiative with a special focus on finding solutions for pending issues in the multilateral talks. "The objective of the Industrial Dialogue is to encourage and support the Brazilian and US governments in increased efforts to obtain the balanced and ambitious Doha Round agreement sought by both FIESP and the NAM, and to do so within a short period of time", said a joint release signed by NAM's John Engler and FIESP, Paulo Skaff. "The Industrial Dialogue will also explore advising on complementary actions in terms of investment opportunities, trade adjustment measures, domestic reforms â€" with an emphasis on taxation, discussion of common interests with regard to the global challenges presented by China, combating intellectual property piracy and counterfeiting, and other matters of mutual interest". The manufacturers private initiative was launched while representatives from the world's leading trading powers, including Brazil and the US, are meeting in India in an attempt to re-launch the Doha Round to liberalize global trade and which remains stalled and has missed several self imposed deadlines. However Brazilian manufacturing industry has been cautious about the current global trade negotiations that include a significant reduction in manufactured goods tariffs, which is the target of United States and other highly industrialized nations. Brazil has spearheaded developing nations in the global negotiations but demanding greater access to the US and European markets for agriculture commodities, where they are highly protected with quotas and subsidies. NAM president John Engler said both organizations had agreed in the Sao Paulo meetings to lobby their governments for a quick result in global trade liberalization. "FIESP and the NAM believe that this is an important moment to break the Doha Round stalemate of the last several months. To achieve this end, both business organizations will intensify their efforts to work with their governments and to engage in close contact with each other to advance the resolution of the issues that are pending in the Doha Round". The release also underlines that "FIESP and the NAM acknowledge that the ambitious Doha Round outcome they seek also depends on further movement from other key players in the negotiations. Therefore the two organizations will work to engage private sector representatives throughout the world to encourage them to persuade their governments to improve their offers in the Doha Round, particularly focusing on industry representatives from Argentina, Canada, China, the European Union, India, Japan and South Africa".