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 Lula in Algeria to boost trade and UN bid
    February 09 2006 at 11:23AM Get IOL on your
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Algiers - Brazilian President Luiz Inacio Lula da Silva flew to Algeria on Wednesday at the start of an African trip to foster business ties and build support for his country's campaign for a permanent UN Security Council seat.

Lula's tour of Algeria, Benin, Botswana and South Africa is part of Brazil's effort to forge a common front of developing countries to push for fairer global trade and more representation in the United Nations.

It is his fifth visit to the continent since he took office in 2003.

In a telephone briefing before his departure, Lula told Algerian media both countries would gain from promoting business links, including ties between their state energy companies.
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'Our two giants, Petrobras and Sonatrach, can develop an enormous partnership'
"Our two giants, Petrobras and Sonatrach, can develop an enormous partnership to work together, here or in Brazil or in third markets," he said.

Brazilian diplomats say they can do business and exert influence in Africa. By the end of this year, the Lula government will have increased the number of Brazilian embassies in Africa by more than 50 percent to 27, including a new post in Benin.

The world's fourth-largest democracy, Brazil is trying to establish itself as a global diplomatic force and wants a permanent seat on the UN Security Council.

"They will also tackle international issues," said a visiting Brazilian foreign ministry official. "They will probably discuss UN Security Council reform."

Lula wants to cut Brazil's $2,8-billion trade deficit with Algeria, its largest in Africa, which stems from petroleum imports.

'Prove to Algerians... they have made a good choice'
"Brazil offers excellent possibilities - cars, heavy vehicles, road engineering services, ports, dams, bridges, railways, radar systems, agricultural development and medicine," said Lula.

"We want to build co-operation in these sectors and prove to Algerians ... they have made a good choice."

Algeria's public finances are healthy and the value of its oil and gas exports reached $45,6-billion last year, up 45 percent from 2004. The country's foreign exchange reserves totalled $56-billion at the end of last November.

Lula said Brazilian agricultural research agency Embrapa and Sebrae, a national body that supports small businesses, harboured development expertise that could help Algeria.

He was to hold talks with President Abdelaziz Bouteflika, his co-host at a summit in Brazil of South American and Arab leaders last year that sought to build business and political links. Lula flies to Benin today.

He is trying to arrange a meeting of leaders of the G8 group of rich nations and the G20 group of developing nations on the sidelines of a governance summit near Pretoria on Saturday and Sunday.

As a G20 leader and a big agriculture exporter, Brazil is seeking a breakthrough in the Doha round of the World Trade Organisation. Brasilia said last week talks could stall if Europe did not grant further market access to farm products.

Brazilian ambassador to Algeria Sergio Franca Danese said in remarks published by Algerian newspapers on Tuesday that military co-operation would also be on the agenda.

Brazil's trade with Africa has more than doubled during Lula's administration to $10,7-billion last year, due largely to higher oil prices that inflated imports from Algeria and Nigeria. - Reuters



    • This article was originally published on page 7 of Cape Times on February 09, 2006
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