[Debate] Brazil's Criticism Of Weak Dollar Garners Support At Summit
Riaz K Tayob
riaz.tayob at gmail.com
Mon Apr 16 16:04:20 BST 2012
Of course, nothing must be done to the rand...
Brazil's Criticism Of Weak Dollar Garners Support At Summit
Luciana Magalhaes. Dow Jones. April 16, 2012
CARTAGENA, Colombia (Dow Jones)--A top official from Brazil said Sunday
the country's criticism of the weak U.S. dollar's ill effects on Latin
America was well-received by other nations in the region during a
weekend summit of western-hemisphere leaders.
The 33-nation Summit of the Americas in the seaside city of Cartagena
included U.S. President Barack Obama, who listened Saturday as Brazil
President Dilma Rousseff--sharing a stage with him--criticized the U.S.
and other developed nations for what she called lax monetary policies.
She said the U.S. prints money in excess to make up for its overspending
habits, which then weakens the dollar against Brazil's real and other
currencies in the region.
Aloizio Mercadante, Brazil's minister of science, technology and
innovation, said Rousseff's tough talk went over well.
"Her alert [about the harm caused by the weak dollar] received support
from many other countries," Mercadente told reporters in Cartagena prior
to his return to Brazil.
The currencies of Brazil, Colombia and several other countries in the
region have appreciated dramatically against the dollar in recent years.
This has brought benefits, such as making imported television sets and
automobiles much more affordable. But it's also made it very difficult
for Latin America's manufacturing and export sector to succeed in global
markets, as their products become too expensive to compete.
During the summit, Brazil's Rousseff also spoke out on other issues that
were at odds with the U.S. government's position. She said, for example,
Cuba needs to be fully supported as it transitions away from hardline
Communism and begins to create somewhat-more liberalized markets.
Cuba wasn't invited to the summit at the insistence of the U.S.
government, which said only democratic nations with free elections can
attend such conferences.
The summit ended without a joint declaration by the 33 nations, as
consensus couldn't be reached on key issues, including Communist Cuba's
possible participation in future summits, and how to best combat drug
trafficking and its related violence.
"There were difficulties in coming to a consensus," said Brazilian
Foreign Minister Antonio Patriota, who was also in Cartagena. "This
reflects the current times, in which relationships among member nations
in the region are evolving and maturing."
-By Luciana Magalhaes, Dow Jones Newswires; +5511 3544-7072;
luciana.magalhaes at dowjones.com
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