Brazil's Lula says hopeful for world trade deal

Sat Jul 26, 2008 8:09am EDT
LISBON (Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Saturday in Lisbon he remained hopeful that difficult talks at the World Trade Organization would result in a global trade deal.
But the leader of Brazil, one of the world's main farm products exporters and a key negotiator in the proposed deal, said developed countries still had to open their markets more.
Compromise proposals revitalized deadlocked talks at the WTO on Friday but ministers warned that much work was still needed to get full agreement on a proposal.
"I keep hoping that the deal will be reached. Differences are normal because many interests are involved," Lula told reporters in Portugal's capital where he attended a summit of Portuguese-speaking nations, including poor African countries.
"What's important is that there is a political understanding that we need this deal as it will be good for the world."
"The rich world needs to understand that free trade is not only about them wanting to sell (their products). It means that they have to be willing to buy as well," he said.
Without an agreement, Lula said poor countries would be left without a market to sell their farm goods and without incentives to produce more at a moment of climbing food prices.
Developing countries say U.S. and European subsidies deter farmers in poorer countries from producing, contributing to the current food crisis.
They also object to the high level of protection that rich country farmers enjoy. Rich countries want improved access to markets for industrial goods and services in emerging nations like Brazil, India and China.
(Reporting By Elisabete Tavares, writing by Andrei Khalip; editing by Jon Boyle)