In the failed Cancún trade talks last month, Brazil emerged as a respected, if not universally accepted, leader of developing countries.
But during the subsequent round of negotiations towards the Free Trade Area of the Americas (FTAA) this month, the tide seemed to change. Several countries withdrew their support, and U.S. negotiators claimed Brazil was isolated. Even within Brazil, the government faced criticism that it was unduly antagonising the U.S.
In reference to the government's apparent hardline negotiating stance, the front cover of Veja, the country's leading news magazine, this week read: Courage or stupidity?
Yet Celso Amorim, foreign minister, in an interview with the Financial Times, insisted his government was negotiating constructively and in defence of legitimate rights. He admitted Brazil had lost a ''media battle'' over its position in the FTAA because of an unfair U.S. offensive. But he insisted there was room for compromise to prevent a failure of next month's Miami ministerial summit.
''We have the right to our vision of an FTAA,'' Mr. Amorim said.
He argued that the U.S. was upset because Mercosur, the four-nation customs union Brazil belongs to, challenged its hegemony by presenting an alternative proposal to the U.S. draft agreement.
He said many of the proposals would strip Brazil and other countries of their ability to have independent policies on technology development, environment and health, including generic medicines.
While the U.S. wants to negotiate rules on services, investment and intellectual property, Mercosur says it will only discuss them if the U.S. considers concessions on agricultural subsidies and antidumping rules. These issues are stalled in the WTO.
He said he was disappointed by U.S. accusations that Brazil was isolated. ``It is like negotiating a trade deal with Asia and saying China and India are isolated. What is the point?''
Brazil lost support from such countries as Colombia, Peru and Costa Rica due to pressure, Mr. Amorim argued. ''They were told they would be ineligible for the FTAA if they attended a G22 [the group of 22 developing countries] meeting,'' he said.
Yet behind the rhetoric, which Mr. Amorim suggested formed part of negotiating tactics on both sides, he saw an ''improving atmosphere'' at a meeting this week between the U.S. and Brazilian FTAA co-chairs.
''It gave the impression we can find some accommodation for our different perspectives,'' he said.
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