Chirac in South America for four days.

Wednesday, the French President Jacques Chirac started a four days visit to Brazil and Chili to promote exchanges between French companies and the two Southern American countries.

For France, the objective is to develop relationships with the two exemplary emerging countries.
For Brazil, this is an occasion to make official a "Strategic partnership" with France as the ministry of Brazil foreign affaires said: "It is planned to put regularly meeting in place between the ministries of foreign affaires."
"il faut aller la ou se situe la croissance de l'économie mondiale, la ou se situent les grands pôles de développement et y faire connaitre les succès de la France et les capacités françaises" said the french spokesman.
This frame of mind has already made the President Chirac go to Thailand, India, Saudi Arabia this year before to go back to China the next autumn.


Growth

Brazil's growth, this year, will approximately reach 5% (2006); Chili's growth will probably be more important announcing 6% growth (2006). The Chilean economy is considered as the most competitive in South America.
The objective of the visit is also to sign contract concerning Foreign Affaires, Economy, Defense, Education and Industry so the respectively ministers of those ministry are following the French president, but also Chairmen of important French companies as Alstom, Saint-Gobain, Areva, Suez et Thales.
"Brazil has an important potential of development and France knows that" said Jacques Chirac.
The difficult position of Brasilia concerning its independence on Bolivian gas will make Brazil take the decision to develop electronuclear programs. Since Morales (Bolivian President) had nationalized hydrocarbure sector, Brazil expects the increasing of gas price; Bolivia supplies 50% of the Brazilian oil consumption. Areva planned to be one of the first company in this sector to deal with Brazil.
Moreover France and Brazil would like to cooperate on Ethanol, the major idea being to make the Caribbean and Africa benefit of the Brazilian knowledge on bio-carburant.
Nowadays, 70% of Brazilian vehicles are working with both Ethanol and blend of Ethanol and gasoline.
France wants to follow the Brazilian example and proposes bio-carburant in every service station up to 2010. Before that, Renault (Already based in Brazil) from now to 2009 is going to introduce "flex-fuel" (flex-fuel engines are working with both Alcohol or gasoline) vehicles in France.

Chirac Vs Lula

Lula Agreed with Chirac on his project to tax plane tickets to finance fight against AIDS in poorest countries. On its side, France is supporting Brazil claiming a permanent seat in the Security Council of United Nations.
However, the two Presidents have not the same position concerning negotiation of WTO (World Trade Organization). Brazil wants European Union opens its agricultural market for Brazilian products and Europe wants Brazil turns down its national barriers to allow importation of industrial and service products from the old continent.
In Chili, Chirac will meet Michelle Bachelet and visit the subway built by French companies.
The president also wants to congratulate the Chilean chief of the Government for the Democracy in place making distance with Pinochet's dictatorship
Business will be also on topical, France owning only 2.3% of Chilean market share.

Jonathan Fredericks

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