Mercosur sees Gulf trade agreement at summit

Mercosur is set to sign the accord with the Gulf Cooperation Council (GCC) at an Arab-South American summit in Brazil to boost trade between developing nations and cut US and European economic dependence, officials said.

“There exists a great possibility this accord will be signed during the summit,” said Mario Vilalva, head of trade promotion at Brazil’s foreign ministry.

GCC members Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, and Oman are among 22 Arab states and 12 South American countries taking part in the first summit between the regions.

“If this meeting sends a message two regions of developing nations can shift world trade geography then that’s important,” said Pedro Motta, head of the Africa unit at the ministry.

Brazilian President Luiz Inacio Lula da Silva first proposed the summit in 2003 to focus on trade but issues like terrorism and Iraq are also on the agenda.

Draft summit declarations have raised US and Israeli concerns the gathering could attack their Middle East policies and tacitly back groups they term ”terrorists.”

A draft obtained by Reuters states support for “the rights of states and peoples to resist foreign occupation.”

“In the end it will be encouragement of a terrorist group and we will have more terrorists,” said Israel’s ambassador to Brazil, Tzipora Rimon, adding that her government had asked for such sections to be dropped.

The declaration will deal with issues like terrorism and Iraq, but contain no position not already stated in forums like the United Nations, Brazilian officials said.

Brazil is hosting the summit as part of its drive to become a diplomatic power and strengthen developing-nation alliances at the World Trade Organization and United Nations.

Nearly all South American countries are sending presidents to the summit. Nine Arab heads of government and state are attending. Among them are Iraqi President Jalal Talaban, Palestinian President Mahmoud Abbas and Lebanon’s new Prime Minister Najib Mikati.

Mercosur — made up of Brazil, Argentina, Uruguay and Paraguay — is looking for new trade partners after EU free trade talks and US-led Americas-wide negotiations stalled.

The Brazilian foreign ministry said 830 business leaders were heading to the summit, including about 200 Arabs, 188 South Americans and over 400 Brazilians.