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I am deeply honored to be here today, and I think your visit of the Brazilian parliamentarians comes at an excellent time, as it once again demonstrates that The United States and Brazil are constructing a new, more mature relationship, built upon a contemporary understanding of the economic and political realities of our own societies and of the world at large.
It is clear that the principal concerns of the past decades have diminished and are being replaced by a shared perspective of the world and of the future that allows both of our nations a new opportunity to move this important relationship into a fuller and deeper configuration. Certainly, for the United States the end of the Cold War has permitted us to take a more comprehensive view of our hemispheric relations. And though it is not my job or my position to comment on Brazilian society, I would take the risk to say that recent years have brought profound change to Brazil, enabling that nation to act more forcefully on the regional and global stage.
Brazil's democracy has repeatedly demonstrated its strength, not only through regular elections, but also by passing through a very difficult period which involved the impeachment of a president. That series of events demonstrated that the rule of law and democratic institutions have the capacity to correct problems that exist in any country. And Brazil's strength and the strength of democratic institutions was increased. Brazil has chosen to open its economy, break state monopolies. It has brought its enterprises increasingly into the competitive market. Trade barriers have been reduced. Under the leadership of President Cardoso, first as Finance Minister, then as President, Brazil has finally conquered its appalling inflation rates, which had crushed Brazilian hopes for decades. Brazil is a respected player in world affairs, pursuing peace and nuclear non-proliferation, trade liberalization and sustainable development, as well as giving new emphasis to human rights concerns at home and abroad.
Brazil's emerging strength comes in the context of a sweeping hemispheric process, which was both celebrated and made concrete by the 1994 Summit of the Americas in Miami. The unprecedented unity of the hemisphere's leaders, supporting the goals of democracy, economic integration, protection of environment and combating poverty, has created an exceptional window of opportunity. We, both of us, Brazil and the United States--indeed all of the democracies in the hemisphere--need to work together to maintain the momentum toward our objectives.
I mentioned earlier that our relationship has become a more mature one. I believe that this maturity dictates that we speak openly and frankly to one another. It is important that we both be transparent in our goals. Let me therefore outline for you the three principal objectives that guide United States policy in this hemisphere:
--We seek to strengthen democracy, the rule of law, and respect for human rights;
--We seek to work cooperatively to combat the menace of the illegal drug trade, international crime, arms smuggling and terrorism, as well as working cooperatively in meeting new challenges such as environmental degradation;
--And finally, an objective which is of great interest to many of you and to us, we seek to promote economic integration through an open and fair trade policy and the building of a Free Trade Area of the Americas.
I believe that there is nothing within these three general objectives that is inconsistent with fostering better US-Brazilian relations. Indeed, these objectives are not only those of the United States but they are the goals of the entire hemisphere, as outlined in the Miami Summit.
Already our relationship with Brazil is guided by these objectives and the results are beneficial to both countries. Allow me to point out some of the fruits of our ongoing cooperation.
--Working together, we helped reinforce democracy in Paraguay when that country came perilously close to losing its new fragile democracy.
--Working cooperatively, we helped bring peace to Peru and Ecuador. Under Brazilian leadership, both countries came to the negotiating table. And credit for progress, now that both countries have said that they are prepared to enter into formal negotiations, is due in large measure to Brazilian leadership of the negotiating process and indeed Brazilian leadership of the multinational observer force called MOMEP, which has American, Brazilian, Argentine, and Chilean military men observing activities on the Ecuador-Peru frontier.
--Working together, Brazil and the United States have sought to control the spread of weapons of mass destruction. The United States supported Brazil's membership in the Missile Technology Control Regime. And we worked very cooperatively together in Geneva to bring about the Comprehensive Test Ban Treaty.
--We collaborate actively on the fight against international crime. And in this regard I would note that in response to specific Brazilian concerns, the United States recently acted to halt the licensing of arms exports from the United States to Paraguay, because Brazilian authorities told us that those arms were winding up reaching criminal elements in Brazil.
And, as you know, we have an active program of anti-narcotics cooperation.
There are other benefits, and I don't have to list every one of them because they are so multifaceted, but the reason I want to talk about them is to show how broad this relationship is. We tend to focus only on trade. That seems to be the principal topic of conversation, and I do want to talk about trade. But yet the relationship is so thick, so deep, it involves so many things, that we should not forget about these other elements.
--Let's not forget about cooperation in space between NASA--our space agency--and Brazilian scientists.
--Let's not forget about the Common Agenda on the Environment that allows us--indeed compels us--to consult one another before multilateral meetings on issues such as climate change, and to exchange information on new approaches on environmental issues.
--Recently we had a Bilateral Trade Review, which was conducted at the request of both presidents, and identified areas in which we could increase and strengthen our two-way trade. Recently we had a meeting here in Washington with Brazilian experts, a highly technical meeting, to clear up misunderstandings that existed about our anti-dumping procedures. We also followed through on our renewal of Brazilian GSP (Generalized System of Preferences) tariff benefits for 1996 and 1997.
--And for travelers, there's the reciprocal policy of multi-year visas, instead of the old system of three-month, one-entry visas that actually served as a great barrier to the exchange of people and ideas.
Certainly, the most visible results of the new relationship between the United States and Brazil are in the field of trade and investment. Net U.S. investment in Brazil between January and August of this year totaled $5.4 billion ($5.4 thousand million). That is an increase of 237 % from the same period last year, and experts tell me that the figure may reach $7 billion ($7 thousand million) before the end of this year. I know that there is some concern now in Brazil about Brazil's negative trade balance. It is not a topic that I wish to discuss nor feel competent to discuss. But, in my view, that statistic only tells one part of a very complex picture, a very complex story. And I personally do not share the preoccupation that we are seeing in some quarters in Brazil. In any event, an open US market meant almost $9 billion in 1995 sales for Brazil in the United States. Brazil exported more to the United States in 1995 than it exported to the other nations of Mercosul, to the Andean Pact, to Central America and CARICOM combined. The United States took about 20 % of Brazil's total exports. In sum, it is clear that our trade relationship is beneficial for both our nations and for the citizens of both our nations.
The United States remains committed to the creation of the Free Trade Area of the Americas by the year 2005, as was proclaimed by the democratically-elected presidents of this hemisphere in Miami. In this great endeavour we look upon Brazil as a major actor and a considerable force for regional integration. This coming May in Belo Horizonte the ministers of trade of the hemisphere will meet once again. They have already met twice since Miami: once in Denver, once in Cartagena. And I anticipate that the ministers will determine when and how to launch formal negotiations. We need--and by 'we' I mean the United States, Brazil, and the hemisphere--need to answer the fundamental questions at that meeting in May relating to the goals and the procedures of negotiation of the Free Trade Area of the Americas. I am concerned that if we don't get answers, and if we don't act with authority, and we are not ready by the time all the presidents reunite in March of 1998 in Santiago, Chile--if we have not done our job--then I think we can be accused of having failed.
On the much-discussed issue of U.S. fast-track authority, I can assure you that President Clinton remains deeply committed to seeking a dialogue with our Congress and working in a bipartisan fashion to obtain this important negotiating authority.
All these areas of cooperation tell a great deal about the new relationship between the United States and Brazil. The advances that I have listed are of course the product of many inside and outside of government--of parliamentarians, of functionaries, of people in think-tanks and private institutions. But I must also acknowledge that nothing so characterizes the relationship between the United States and Brazil as the very heavy amount of high-level contact which exists.
On the day that he took office as President of Brazil, President Clinton invited President Cardoso to visit the United States. The visit, which occurred in April of 1995, was a tremendous success. It established a rapport between our two governments that has served us well. The two presidents communicate frequently by telephone and by letters that are more than mere cordial formalities but are rather substantive discussions of the relationship. As I speak, Presidential Counselor Mack McLarty is in Brazil, taking a personal message from President Clinton to President Cardoso and holding a series of high-level meetings. Foreign Minister Lampreia and Secretary Christopher have met regularly and established a warm relationship. Secretary Christopher had an excellent three-day visit to Brazil earlier this year. Other cabinet-level consultations continue on an almost daily basis, and of course today we welcome this distinguished group of visiting parliamentarians.
U.S.-Brazilian relations have reached the level of maturity that one would expect to find between good friends and partners. But no good relationship is trouble-free or without occasional differences. Indeed, the proof of a mature relationship is the manner in which these differences are dealt with. In relations between countries where 95 % of all issues reflect consensus and harmony, the discord over the remaining 5 % often shocks our sensibilities.
But these differences can be confronted and dealt with, if the leadership of the two countries are willing and able to place the disagreements within the framework of much broader cooperation which serves our mutual benefit. Clearly, a mature relationship must take into account the assymetries which inevitably exist. These cannot be wished away--they cannot be ignored, nor should they be allowed to dominate the relationship. Maturity means not using either relative strength or relative weakness on a given issue to justify actions which are patently unfair or restrictive.
In conclusion, we have every reason to be optimistic about the U.S.-Brazil relationship. We can base our optimism on the concrete signs of progress, some of which I have listed for you tonight. President Clinton has just been elected to a second term, which offers great promise for continuing the accomplishments of the last four years. Brazil and the United States share many characteristics--we are both vibrant democracies, covering huge territories rich with natural wonders and precious resources, populated by people who take pride in their multiracial, multiethnic heritages, by people who are optimists. This optimism gives us new opportunities. As Secretary Christopher said in Sao Paulo on March 2nd--and I quote--"Now we have a chance to combine our strengths [combine the strengths of Brazil and the United States] to form a strategic partnership."
I am confident that the United States and Brazil are creating that partnership--a partnership that will operate on both a regional and global basis, and this partnership will be based on shared principles of democracy, free trade, mutual cooperation to confront transnational problems. I believe that both countries recognize that we have commitments to the larger world. And in this regard I stress for my American friends the great contribution that Brazil is playing in peacekeeping activities of the United Nations, including for instance in Angola, where their contingent of troops is the largest in that peacekeeping operation.
Our partnership is not an exclusive one that seeks to keep others out, but rather is one that will make each of us better able to welcome others into our cooperative endeavour. This will not be an easy task. Hard work is required and time is of the essence. There are some in this country who say: "What's your hurry? The Free Trade Area of the Americas doesn't have to be created until 2005. Let's take it slow." There are many in Brazil who I hear say: "We have had such rapid progress in recent years. We have opened so much. Let's step back and take a rest." I don't think we have the time. Time is of the essence. And to conclude, I'll remind you of a wonderful story about a very old man living in the countryside who one day called his gardener to come see him. He told the gardener to go into town and buy a small apple tree--a sapling--to plant it tomorrow afternoon. The gardener was very deferential and he said: "Of course I'll do that. But sir, you are 95 years old. It will take many years for that apple tree to produce some fruit." "Ah," said the old man, "you are right - you better go to town today and plant that tree this afternoon."
Thank you very much.
[end of document]
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