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Lula: Protectionism may worsen fiancial crisis

(Xinhua)
Updated: 2009-02-12 14:48

RIO DE JANEIRO -- Brazilian President Luiz Inacio Lula da Silva has criticized the recent protectionist moves by some countries, saying it may worsen the international financial crisis.

In a meeting with Namibia's President Hifikepunye Pohamba in Brasilia on Wednesday, Lula said continuing trade is part of the solution to the crisis.

He stressed the importance of reaching an agreement in Doha Round world trade talks in order to shore up the world economy.

"Trade is certainly part of the solution; protectionism, on the other hand, will only serve to worsen the financial crisis. An agreement in the WTO's Doha Round will send a powerful message to markets and give a new impulse to the global economy," he said.

Lula added that a reorganization of world trade has to be followed by a reform of international relations. According to him, the world needs to find a new and more democratic governance system.

"The final say cannot be concentrated in the hands of the few, ignoring the aspirations of developing countries and of the largest emerging economies," he said.

Agreeing with Lula on trade issues, President Pohamba called on developed countries to remove agricultural subsidies, which he said created an unfair international trade platform.