Brasília, 6/28/2004 (Agência Brasil) - Last week the government ended a "strategic" series of trips abroad in favor of the Brazilian economy. According to president Luiz Inacio Lula da Silva, the trips brought "extraordinary" results, especially in the export sector. "Exports rose significantly in the first year of our administration. This year they are up 25% over last year. And the important thing is that we are not just exporting farm produce. We are exporting manufactured goods, such as cars, airplanes and machinery," declared Lula during his fortnightly radio program, "Breakfast with the President."

The trip last week to the United States, according to Lula, gave Brazil's ties with its biggest trade partner a dynamic boost. More trade with the US means more jobs, economic growth and bigger incomes for Brazilians, said the president. "I came back from the trip convinced that it was a success," said Lula.

The president went on to say that he was determined to create "a bolder commercial, cultural and political relationship with the US."

But Lula added that Brazil's true intention was to strengthen trade with regional blocks in South America, Africa, the Middle East and Europe. "World trade is a battle. Everybody wants to sell more than they buy. That means we have to have quality at a good price all the time. We will have to continue making these trips, consolidating our advances, treating foreign trade with special attention," said Lula.

Employment

During his radio talk, the president also spoke of the drop in unemployment that fell from 13.1% to 12.2% in May. Lula said the tendency is for unemployment to drop further, but that the government faced a very big challenge in creating jobs. "There is still a lot to do. When the economy improves, businesses prefer to pay overtime, rather than hire new workers. They want to make sure the growth is sustainable. When they see that the growth is strong, they will hire new people," said the president.

Lula pointed out that between January and April, 543,000 new jobs had been created - jobs in the formal, on-the-books market. "Things are improving. But we want more, faster. We believe that microfinancing and easier credit access are having an effect. The Brazilian economy is on track, there will be sustainable, continuous growth."

Lula also said he was pleased with the tourism sector where there was a US$347 million surplus, showing that more people were coming to Brazil than Brazilians going abroad. Tourism,concluded Lula, is a job-creating sector that brings reserves to the country.

(Translator: Allen Bennett)