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Bradley S. Klapper and Eliane Engeler
Associated Press
Sun, 20 Jul 2008 07:55 EDT

Grand Theft Economics

Some pre-negotiation jabbing turned into a potentially damaging diplomatic incident Saturday when Brazil's foreign minister said rich countries' deception in trade talks reminded him of tactics used by Nazi propaganda chief Joseph Goebbels.

His comments drew a sharp rebuke from the United States, whose chief trade negotiator, Susan Schwab, is the daughter of Jewish Holocaust survivors. Her spokesman described the reference to Goebbels as "incredibly wrong."

The controversy threatens to overshadow next week's last-ditch effort to save seven years of frustrating talks on a new global trade pact toward alleviating poverty around the world.

The so-called Doha trade round is already teetering on the brink of collapse. President Bush has made a Doha deal a key part of his trade agenda.

Brazilian Foreign Minister Celso Amorim said the U.S., Europe and other wealthy economies have so frequently misrepresented the talks launched in Qatar's capital in 2001 that public perception has become totally warped.

"Goebbels used to say if you repeat a lie several times it becomes a truth," Amorim told reporters at the World Trade Organization, where top negotiators from over two dozen countries are expected Monday for the official start of the talks.

Poorer countries have demanded cuts in the farm tariffs and subsidies used by wealthy countries, saying they hinder Third World development. In exchange, rich countries have insisted on better market access in developing countries for their manufacturers and service providers.

Amorim implied that rich countries were employing Goebbels' lying tactics in describing the agricultural concessions they claim they are willing to make, while criticizing poorer countries for refusing to liberalize their industrial markets.

"I am reminded of Goebbels," said Amorim, whose country has co-led with India a broad coalition of developing countries at the WTO talks.

Later, his spokesman qualified the remarks and apologized to Schwab.

Sean Spicer, spokesman for the Office of the U.S. Trade Representative, said he was horrified by the "personal venom" of Amorim's words.

"We came here to Geneva to negotiate on substance," Spicer told The Associated Press. "For him to make remarks like this is so incredibly wrong. They are insulting."

Spicer noted that Schwab visited Amorim to soothe tensions immediately after negotiations collapsed in acrimony in 2006.

In an interview with the AP, Amorim's spokesman Ricardo Neiva Tavares said the minister "regrets if Susan Schwab or anyone else was upset by his comments on a historical fact. He certainly did not intend to hurt anyone's feelings, which he deeply respects."

Comment: Brazil's foreign minister is largely correct. The US and other Western countries act like the mafia when it comes to imposing their economic order on Third World countries. As explained by a "former respected member of the international banking community" and "economic hit man", Anthony Perkins:

over the past 30 to 40 years, we economic hit men have created the largest global empire in the history of the world. And we do this, typically - well, there are many ways to do it, but a typical one is that we identify a third-world country that has resources, which we covet. And often these days that's oil, or might be the canal in the case of Panama. In any case, we go to that third-world country and we arrange a huge loan from the international lending community; usually the World Bank leads that process. So, let's say we give this third-world country a loan of $1 billion. One of the conditions of that loan is that the majority of it, roughly 90, comes back to the United States to one of our big corporations, the ones we've all heard of recently, the Bechtels, the Halliburtons. And those corporations build in this third-world country large power plants, highways, ports, or industrial parks - big infrastructure projects that basically serve the very rich in those countries. The poor people in those countries and the middle class suffer; they don't benefit from these loans, they don't benefit from the projects. In fact, often their social services have to be severely curtailed in the process of paying off the debt. Now what also happens is that this third-world country then is saddled with a huge debt that it can't possibly repay. For example, today, Ecuador. Ecuador's foreign debt, as a result of the economic hit man, is equal to roughly 50 of its national budget. It cannot possibly repay this debt, as is the case with so many third-world countries. So, now we go back to those countries and say, look, you borrowed all this money from us, and you owe us this money, you can't repay your debts, so give our oil companies your oil at very cheap costs. And in the case of many of these countries, Ecuador is a good example here, that means destroying their rain forests and destroying their indigenous cultures. That's what we're doing today around the world, and we've been doing it - it began shortly after the end of World War II. It has been building up over time until today where it's really reached mammoth proportions where we control most of the resources of the world.

...

[The President of Panama,] Omar Torrijos was the first one to break that cycle, and he was a very, very popular president. He was popular throughout much of the world...When one stands up to the system as Torrijos was doing, it's not only a threat in his country, like Panama, that we're not going to get our way there, but it also may be seen as setting a very bad example for the rest of the world that once one leader stands up - and at that time there was another leader standing up, too, who was the President of Ecuador, Jaime Roldos. They were both standing up to the U.S. government. They were both standing up to the oil companies and the economic hit men, and it was a very big concern to me. I knew in my heart that if this continued, something was going to give. Of course, it did. Both of these men were assassinated by what we call the jackals, C.I.A.-sanctioned assassins.


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