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Letter from President Luiz Inácio Lula da Silva to the Prime Minister Tony Blair
(15 November, 2005)
"It was with great interest that I learned of your speech yesterday at Mansion House in which you dealt with various aspects of globalization and the fight against poverty. I was especially interested to note what you said regarding the importance of achieving a rapid conclusion to the Doha Round which is of benefit to all, but especially to developing countries. I agree with your assessment that behind the launch of the Doha Round in the wake of the tragic events of 11 September 2001 lay an awareness of the importance of ensuring that trade provides substantive benefits for the world’s poorest populations. It is only by combating poverty that we will achieve the security we all need, and it is only through trade free of unjust and unjustified distortions that we will be able to bring millions of human beings into the dynamic sphere of the world economy.
This is a crucial moment. The rich countries – less than 2% of whose populations are employed in agriculture, as you point out – must open their agricultural markets and eliminate the distortive subsidies that deny poorer countries both a level playing-field on which to compete and the chance to benefit from the wealth generated by new technologies. The United States made an important, albeit insufficient gesture in indicating its willingness to substantially reduce its most distortive subsidies. It is a gesture that needs to be complemented by measures to ensure that other forms of support for agricultural production indeed prove to be less distortive. The reduction in overall support also needs to be more significant. But we know that for these steps to be made, it is absolutely necessary that the EU give clear signs that it is willing to open its markets and reduce the internal subsidies which are presently the biggest in the world by far.
I wish to express my admiration for the leadership you have shown not only as Prime Minister of one of the most influential members of the G-7, but also as President of the European Union. I am sure the developing countries will do their part in pursuing the shared objective of strengthening the multilateral system and making trade both freer and fairer, as long as all parties respect the criteria of proportionality and flexibility which lie at the core of the special and differential treatment sanctioned by the WTO, and which were reinforced in Doha. Brazil is fully conscious of what it must do – and, in fact, has been doing – for the world’s poorest countries.
Within this framework, you can count on my support as we strive to achieve these objectives, the implications of which are not limited to the arena of trade but have a direct bearing on the preservation of international peace and security."
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