"President Barack Obama's domestic political weakness has limited progress ... As much as Dilma has been assertive about opening the U.S. market to Brazilian products like ethanol, orange juice and steel, the American leader has no power to decide on tariffs and subsidies. Moreover, lobbying by the agriculture and steel sectors is very strong amongst U.S. Congress members."
By Eliane Oliveira,
Gerson Camarotti and Regina Alvarez
BRASÍLIA: President Barack
Obama's domestic political weakness has limited progress on the economic and trade
agenda during his official visit to Brazil, government officials, analysts and
Brazilian businessmen say. Without the influence in the U.S. Congress he once
had to pass programs like health reform and the budget, Obama has shown no
sign of making any concrete progress on President Dilma Rousseff's central
demands: a reduction of trade barriers on Brazilian products and a change in direction
of actions taken to achieve recovery in the U.S., the side effects of which are
a loss of Brazilian competitiveness.
Even so, the general assessment
is that the trip was full of positive symbolism, such as Obama's regard for Brazil's
claim to a permanent seat on the U.N. Security Council - a gesture considered a
victory by the federal government and Foreign Ministry; his recognition of
Brazil as a global leader on a par with China and India; and his definition of Brazil
as a strategic partner in the area of energy and investment.
Posted by WORLDMEETS.US
As much as Dilma has been
assertive in her comments about opening the U.S. market to Brazilian products like
ethanol, orange juice and steel, the U.S. leader has no power to decide on
tariffs and subsidies. Moreover, lobbying by the agriculture and steel sectors
is very strong amongst U.S. Congress members.
Residents
of Rio try getting glimpse of President Obama, Mar. 21.
U.S. macroeconomic plans,
such as maintaining a weak dollar, will not change. Brazilian industry, which faced
strong competition from China domestically and on other markets, is unable to get
their exports to the American market, and Brazil already suffers an annual $8
billion trade deficit with the U.S.
For Minister of Development
Fernando Pimentel, who oversees the portfolio responsible for most of the
economic issues addressed by the Obama visit, the fact that there has been no
great progress on the economic agenda proposed by Brazil shouldn't be viewed as
a disappointment:
"On a trip like this, one
can't expect an immediate effect. It is the beginning of a process in a very
long-term relationship. There were concrete signs in the direction we've
imagined. And they will thrive," Pimentel said.
The actual reform of the U.N.
Security Council, where Brazil hopes to become the sixth permanent member,
continues to be mired in doubt. That's because U.N. member states are lukewarm
on the subject, and a review and expansion of the Council, experts say, is unlikely
only happen before 2014.
