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Brazil Property News: Foreign minister: Free-trade agreement would make Brazil 'vulnerable'
7th April 2008 02:30
Brazil's foreign minister has said that those countries which have signed free-trade agreements with the United States are the most vulnerable to the consequences of the US housing crisis.
Speaking at an event sponsored by Brazil's economic and social development council, Celso Amorim pointed out that Brazil has "diversified markets", Brazzil Mag reports.
Those considering buying property in Brazil could be relieved to hear that Brazil's housing market is therefore safe from the repercussions of the US crisis.
Amorim noted that market diversification is the main foreign policy line of President Lula da Silva's administration.
He added that trade with Argentina, Uruguay and Paraguay – Brazil's Mercosur partners – has grown 320 per cent under Lula since 2003 and is higher than that with the US.
"The most severe impacts will be suffered by those economies most integrated to the United States, those that have free trade agreements with the US," he concluded.
US treasury secretary Henry Paulson announced the free-trade agreement last week and it looks unlikely that Brazil will sign it.
In related news, Reuters reports that the White House has won approval of a free-trade deal with Colombian as both Clinton and Obama are threatening to withdraw the US from the deal.
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