EU, Brazil ink partnership pact at landmark summit

(LISBON) - The European Union and Brazil Wednesday signed a "strategic partnership" to cement relations at the first ever summit of the bloc and one of the world's major developing economies.

Brazilian President Luiz Inacio Lula da Silva and Portuguese Prime Minister Jose Socrates, whose country holds the rotating presidency of the European Union, were among a clutch of dignitaries witnessing the signing.

Socrates described the accord as "concretising one of the great priorities of our presidency" of the EU.

Others who attended the event included the Portuguese president of the European Commission, Jose Manuel Barroso and the EU's foreign policy representative, Javier Solana.

Also attending the talks in Lisbon were Slovenian Prime Minister Janez Jansa, whose country takes over the EU rotating presidency in January, and EU trade commissioner, Peter Mandelson, who earlier welcomed the development as a major step.

The agreement aims to deepens political ties between the EU and Brazil, as well as cooperation in fields such as technology, climate change, science, the environment, education and culture.

The agreement comes amid tensions between Brazil and Europe on a slew of issues including the thorny issue of agricultural subsidies.

Lula recently called on EU states to bring about an "effective and substantial reduction" in all forms of subsidies and barriers which distort the rules of agricultural trade."

Brazil and fellow developing power India walked out of the recent Doha round of multilateral trade negotiations over the issue, but Wednesday's talks provided an opportunity to thrash out a compromise.

Calling on developed partners to show a more flexible approach, Lula said: "We cannot accept the current impasse. We are endangering the entire multilateral trade system, (which would) constitute enormous damage for the poorest nations."

But he added that the summit provided a renewed impetus to seeking agreement, saying: "Both sides want to reach an accord," and underlining that the talks "provides for relaunching efforts" to this end.

Barroso on his part said: "The positions are not as divergent as assumed. It is possible to save Doha. The EU wants to save Doha and we hardly have a few weeks to do this."

Both sides also reiterated their belief in democracy and respect for human rights, pinning their faith in the United Nations "as the main instrument for the defence of peace and international security."

The burning issue of global warming and the threat to the environment was also on the agenda with Lula saying that "at a time when the international community is discussing solutions to meet the global warming challenge, Brazil and the European Union can bring to the table innovative solutions regarding biofuels."

Brazil is the world's biggest producer of such fuels, producing around 17 billion litres a year.

"Ethanol and biodiesel open the way to a true revolution for the world's poorest countries," Lula added, saying careful exploitation of the resource would boost employment, particularly in rural areas, and bolster food supplies.

Business leaders from both sides also held their own forum on the sidelines of the summit meeting and Brazilian oil company Petrobras and Portuguese counterpart Galp signed an agreement for the production of 600,000 tonnes of Brazilian biodiesel a year, half of which would be sold in Europe.

Lula called on European states to help combat disease, hunger and poverty which he said were key causes of conflict, and to lend a helping hand in the fight against terrorism and organised crime.

The summit was winding down Wednesday night with a state dinner attended by French President Nicolas Sarkozy, Spanish Prime Minister Jose Luis Rodriguez Zapatero and his Italian counterpart Romano Prodi.

EU relations with Brazil