German president defends free trade during Brazil visit

from The International Herald Tribune

BRASILIA, Brazil: German President Horst Koehler defended free trade as a way of fighting terrorism during a visit Thursday to Brazil's capital, while Brazilian President Luiz Inacio Lula da Silva lashed out at farm subsidies in the United States and Europe.

"We really have to oppose those that support terrorism with trade development and by combatting poverty," Koehler told reporters following a meeting with Silva.

Koehler made his comments alongside Silva, who took the opportunity to rail against farm subsidies in the United States and Europe — the main stumbling block toward the conclusion of the so-called Doha round of trade talks under the World Trade Organization.

"We know that if there is no accord that provides a chance for the poorest countries on the planet, we won't easily fight poverty, hunger and much less terrorism," said Silva, who appealed to Koehler to convince German Prime Minister Angela Merkel to work toward ending farm subsidies in the European Union.

But Koehler's visit to Brazil was largely overshadowed by the impending visit Thursday of U.S. President George W. Bush.

At the joint speech, Silva also lashed out at American trade subsidies and tariffs barriers, among them a 54 cent (€0.41) a gallon surcharge on imports of Brazilian ethanol.