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Posted on Sustainabilitank.info on May 10th, 2013
by Pincas Jawetz (PJ@SustainabiliTank.com)

Our website has proposed that geopolitics are headed to a new structure were it is needed to have a billion people in order to be considered a World Power. As such we proposed that besides China and India, the other World powers will be -

- an Anglo-American Block led by the US and that will include also the UK, Australia, New Zealand, Canada, and as well Mexico and Japan;
- a European Block led out of Brussels by a more united and reorganized EU and that will include Russia but not the UK;

- an Islamic Block led by Turkey or Indonesia that will stretch from Mauritania to Indonesia;

- and a block “Of the Rest” that will be led by Brazil and include, with a few exceptions based on the US led Trans-Pacific Partnership (the TPP) , Latin America, Africa, the SIDS, parts of Asia.
It is this last Block that will become the new Third World – that is the Sixth World of those outside the China, India, US, EU, and Islamic Blocks.

We see the recent news of Brazil defeating Mexico for the leadership of the WTO as an important step in above direction.

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Brazil Wins Leadership of the World Trade Organization

Brazilian Roberto Azevêdo has been chosen over Mexican candidate Herminio Blanco as the newest director general of the World Trade Organization (WTO) on May 7. El Palenque, AnimalPolitico’s debate forum for experts, discusses the effects this win will have on Mexican diplomacy, Brazil’s role in trade liberalization, and the prominence of the BRICS on the world stage. Azevêdo will be the first Latin American to head the WTO.

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The Financial Times wrote May 7, 2013:

So, Roberto Azevêdo, Brazil’s candidate for director general of the WTO, has pipped his rival Herminio Blanco of Mexico for the job.

But there is still a question to be answered: Who won? The man or the country?

Between Azevêdo and Blanco, there may not be much to choose. Both have impressive credentials. Azevêdo, a career diplomat in one of the world’s most polished diplomatic services, has been Brazil’s ambassador to the WTO since 2008. He knows the organisation inside out. Blanco is a businessman steeped in trade, a trade consultant who was formerly Mexico’s trade minister and its chief negotiator during preparation of the North American Free Trade Agreement.

If the race was between two technocrats, it must have been a photo finish.

But what if the WTO members voted for the country, not the man? Then, it was a matter of chalk and cheese. Disgruntled Mexicans – whose pride will have taken a severe knock – will call this a victory of protectionism over free trade.

It will also be a victory of the developing world over the developed one.

Mexico, which has free trade agreements with 44 different countries, is the new poster child of developed world policies at work in the developing world. Brazil has free trade agreements with nobody, and has shown a tendency to renegotiate what agreements it does have as soon as they become inconvenient – not least its auto agreement with Mexico. Many developing countries – in Africa and Asia as well as in Latin America – will have felt the Brazilian was much more likely to protect their fledgling manufacturers and farmers than was the Mexican. Many of those countries, especially in Africa, already have closer ties with Brazil than they do with Mexico.

In an interview with Reuters, Azevêdo played down the issue of nationality:

“I, as candidate and as director of the WTO will not be representing Brazil,” Azevedo told Reuters in a phone interview on Tuesday.

“I made it to the final round in the election with those complaints on the table, and that doesn’t change things. It means there is an understanding between WTO members that the candidate must be independent from his country and be evaluated according to his skills.”

Asked if he considered Brazil was protectionist, he declined to comment.

To those who say that, under Azevêdo, the WTO will lose sight of its mission to promote free trade, others will reply that it never had one in the first place.

But Tuesday’s decision will make a big difference. No matter how pure a technocrat he is, Azevêdo will find it hard to fend off the influence of Brasília. It was the Brazilian that won, and not the Mexican.

Related FT reading:
Brazil wins battle for WTO leadership, FT
WTO chief must show relevance by making progress on global pact, FT
WTO candidates adopt varying stances on trade, FT
Questions for the world’s next trade chief, FT
Herminio Blanco: status quo is not an option for the WTO, beyondbrics

SO, WE WILL SAY – THE FT AGREE WITH OUR POINT OF VIEW THAT THE US CANDIDATE – MEXICO – LOST TO THE CANDIDATE OF THE THIRD WORLD – THAT IS OUR TRUE SIXTH WORLD – WHO WILL STAND UP TO THE BIGGER BOYS OF THE OTHER FIVE WORLDS – SPECIFICALLY THE US – WHO BLATANTLY USE THE INTERNATIONAL ORGANIZATIONS FOR THEIR OWN GOOD – EXCLUSIVELY!!!

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FURTHER NEWS OF RELEVANCE TO THE NEW WORLD IN THE MAKING:

Clinton Global Initiative to Launch Latin America Program in Rio

Former President Bill Clinton announced on May 6 that the Clinton Global Initiative (CGI) would be expanding to Latin America in December 2013, with its first meeting set to launch in Rio de Janeiro. He was joined by Rio Mayor Eduardo Paes in making the announcement at the mid-year meeting for his annual conference.

Brazil Starts Small Business Ministry

President Dilma Rousseff announced the start of a small business ministry on May 6, saying that government banks will provide up to $7,500 to small businesses in 2013 and will reduce the public loan interest rate from 8 percent to 5 percent beginning on May 31. “The question of small business is indispensable for the country’s future and present,” said Rousseff. Brazil’s estimated 6 million micro and small businesses accounted for 40 percent of the country’s 15 million new jobs from 2001 to 2011.

Cuba to Send 6,000 Doctors to Brazil

Brazil plans to hire approximately 6,000 Cuban doctors to work in the country’s rural areas, said Brazilian Foreign Minister Antonio Patriota on May 6. The Federal Medical Council­–a Brazilian doctor’s organization–questioned the island nation’s medical qualifications, but Patriota called Cuba “very proficient in the areas of medicine, pharmaceuticals, and biotechnology.” President Dilma Rousseff began the talks in January 2012, and both countries are currently consulting with the Pan American Health Organization to move forward.

A Bright Outlook for Latin American Economies?

The International Monetary Fund’s May 2013 Regional Economic Outlook predicts Latin America’s growth to increase approximately 3.5 percent by the end of the year. But, in an article for The Huffington Post, Director for the IMF’s Western Hemisphere Department Alejandro Werner questions whether countries in the region will be able to “adjust policies to preserve macroeconomic and financial stability” after the near-future external benefits, such as easy external financing and high commodity prices, begin to decline.

Volcanoes and Geysers Could Fuel Chilean Energy

Chile will partner with New Zealand to develop its deep exploration drilling and to develop its geothermal energy production. Chile is home to 20 percent of the world’s active volcanoes, which can be harnessed for geothermal energy. However, only 5 percent of the country’s electrical power is attributed to renewable energy resources, reports IPS News.

The Pacific Alliance Creates a Legislative Committee

Heads of Congress from Pacific Alliance members Chile, Colombia, México, and Perú signed an accord to form a Pacific Alliance Inter-Parliamentary Committee on May 6, reports La República. The committee would serve as the legislative arm of the Alliance by developing a framework to approve free trade agreements and distribution of goods, services, and capital under the Alliance. The committee will be officially presented to the Alliance at a legislative session in Chile in June.

Washington to Host Chilean and Peruvian Presidents

Chile’s President Sebastian Piñera and Peru’s President Ollanta Humala will visit Washington D.C. in June to discuss economic relations with President Obama. Piñera’s visit will take place on June 4, and Humala will visit one week later on June 11. The agenda will likely touch on negotiations with the Trans-Pacific Partnership, as all three countries hope to develop closer economic ties to Asian markets.

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