Topic: Business
Last June, Brazil, India and South Africa had formed the G3 to boost trade and combine their political muscle in world forums like the United Nations. Now, President Luiz Inacio Lula da Silva of Brazil thinks the group can be expanded.
"We dream that in the near future it will be a G5, which will be with Russia and China," President da Silva told reporters on 27 May during his trip to China. "We want to build a political force capable of convincing rich nations...they can ease their protectionist policies and give access to the so-called developing world."
The United States, however, is unimpressed.
"We need to focus on the substance [of talks], not what the gamesmanship is," US Commerce undersecretary Grant Aldonas told reporters in Brazil's Congress when he was asked for his opinion of President da Silva's proposal. "Whatever the grouping is that's not that much of a concern."
Even if the G5 proposal does not make any headway, President da Silva's visit to China may already have. His delegation of eight cabinet ministers, six state governors and 450 business leaders has already sealed a number of commercial agreements. These include US$5 billion worth of deals for Brazil's CVRD group, the world's largest iron ore exporter, and an accord that will see Brazilian and Chinese oil companies working together in South Asia, Iran and South America.
As it is, Brazil and China -- the two biggest economies in the developing world -- have already seen trade between the two nations grow five-fold between 2000 and 2003 to a value of US$8billion.