Media Reaction Sao Paulo February 10 2009

UNCLAS SAO PAULO 000089 SIPDIS STATE INR/R/MR; IIP/R/MR; WHA/PD DEPT PASS USTR USDOC 4322/MAC/OLAC/JAFEE E.O. 12958: N/A TAGS: KMDR OPRC OIIP XM XR XF BR SUBJECT: Media Reaction Sao Paulo February 10 2009 Media Reaction: Global Economy: Financial market crisis; protectionism; globalization: Sao Paulo Title- To avoid a setback Editorial in liberal in Folha de S.Paulo (2-10) says: "One of the major threats related to the economic crisis has come to pass. Economic and commercial protectionism is expanding in many countries....more than ever, it is time to honor shared mechanisms to overcome the crisis. That is the only way to stop the corrosive march towards protectionism, which brings with it nationalism and xenophobia. The every man for himself [move] is a recipe for disaster." Title- A more representative G8 Article in liberal in Folha de S.Paulo (2-10) by Italy's ambassador Michele Valensise states: "Italy assumes the Presidency of the G8 in January of this year at a particularly critical phase in international relations, in which global institutions of 'governance' have been strongly challenged by the financial crisis.....The Italian government is, therefore, being very careful on the format of the summit (that this year will take place from July 8 to July 10....),aiming to make it more efficient and representative, adapting it to new demands.... we are also organizing a meeting of labor ministers from G8 countries and other important economies (in Rome, from March 29 to 31)....For this meeting, for which [Brazil's Labor] Minister Carlos Lupi has been invited, we expect an important contribution from Brazil." Title- Foreign Trade and the crisis Op-Ed in center right O Estado de S. Paulo (2-10) by former Ambassador Rubens Barbosa says: "The global financial crisis and the recession in the developed economies of Europe and the U.S., in addition to the significant drop in China's and emerging countries' growth, led to a dramatic and rapid decrease in job's level and in global trade interchange. Doha's failure and the dangerous increase of protectionist trends in developed countries, starting with U.S., will make the situation even more complex....The perspectives for Brazilian foreign trade for the next 2 years are tough, as evidenced by estimates of sensible reductions in exports in 2009.....Because Brazil did not deal with internal challenges earlier, now it has to face simultaneously three vulnerabilities....: structural ones...., operational ones....and exogenous ones." WHITE