São Paulo, June 30, 2003 (Agência Brasil - ABr) - A first step in a large process which can affect protectionist policies in all rich countries. This was the way the Minister of Agriculture, Roberto Rodrigues, characterized the European Union's decision to liberalize its strict agricultural policy.

"The rich countries' gigantic, unassailable fortress of agricultural protection suffered its first scratch with this shift in the Common Agricultural Policy," the Minister declared.

For Rodrigues, the measure can produce a "chain reaction," since U.S. President George W. Bush told President Luiz Inácio Lula da Silva, during Lula's recent visit to that country, that, if Europe moved in the direction of reducing trade protection, the United States would be willing to follow suit. "Europe made the first move; now we are entitled to assume that the move will have a chain reaction effect that ends up producing something positive in the Doha Round, as will as at the meeting in Cancun, next September," he affirmed.

The Minister also remarked on the expiration, in December, of the so-called peace clause, Article 13 of the World Trade Organization's agricultural agreement. Without this clause, countries will be freer to retaliate against other countries' subsidies. "It [the peace clause] terminates, finally, on December 31, negotiations will be real negotiations. It is possible that defenders of the peace clause will work out some kind of agreement to maintain it, so we have to be very strong and competent to keep this from occurring in the negotiations," he said.

Rodrigues participated in the closing ceremony of the "2003 Brazil Competitiveness Meeting," at the Getúlio Vargas Foundation. The event is promoted by the World Economic Forum, the international business-centered organization that holds annual meetings in Davos, Switzerland, and is accredited by the UN Economic and Social Council. (DAS)