BRASILIA (AFP) - Brazil has recognized China as a market economy, President Hu Jintao declared here, claiming the prized status his delegation had been clamoring for since their arrival in Brasilia a few days ago.
Speaking to reporters at the Planalto palace, where he was joined by Brazilian President Luiz Inacio Lula da Silva, Hu said: "In our talks, Lula announced that he recognizes China as a market economy.
"I would like to express my gratitude for this declaration, which will enrich our exchanges," he added.
Hu arrived in Brasilia for a five-day visit on Thursday, but Chinese officials had been pressing the issue for at least two days.
Brazil`s industry and trade minister, Luiz Fernando Furlan, said the more than 20-hour negotiations between the two nations almost collapsed late Thursday.
"At first, the Chinese position was like a Samba song with one note: `We are here to get the market economy status, period,`" Furlan said. "President Lula`s position was that we had to have a balanced agreement or we wouldn`t have an agreement."
Furlan said Brazil`s bovine and poultry industry were granted access to China`s market and Brazilian aircraft maker Embraer obtained a commitment for an order of at least 10 airplanes.
China pledged to give Brazil special access to the Asian giant`s market as a reward for designating it as a market economy, he added.
"Chinese authorities told us that countries that recognized it from the beginning will have access privileges in the Chinese market and will be treated as priority friends," Furlan said.
Thursday, Paul Liu, president of the Brazil-China Chamber of Commerce, estimated that China may invest as much as five to seven billion dollars in Brazil over the next several years.
Brazil, Beijing`s top Latin American trade partner, is seeking to export bigger-ticket items to China. To date, goods such as soy and iron represent some 60 percent of Brazil`s exports to China.
Beijing aims to increase trade with Brazil to 35 billion dollars by 2010, according to Li Ming Lin, secretary of China`s commerce ministry, who spoke in Sao Paulo before Hu`s arrival.
Trade between Brazil and China has increased 800 percent over the past 10 years, and in 2003 China became Brazil`s third-largest trading partner, behind the United States and Argentina.
China joined the World Trade Organization in 2001 and has a total of 15 years to move from a transitional economy to a market economy, which is based on supply and demand rather than factors determined by the government.
Under WTO anti-dumping rules, non-market economies` exports are more costly, thus reducing the amount those countries can generally sell.
Among the other countries that recognize China as a market economy are Benin, Brunei, Cambodia, Georgia, Indonesia, Kyrgyzstan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Africa, Thailand, Togo and Vietnam.
From Brasilia, Hu will head to Chile for the November 19-21 Asia-Pacific Economic Cooperation (APEC) forum summit. He will cap his trip with a visit to Cuba.
Hu`s entourage includes Foreign Minister Li Zhaoxing, Commerce Minister Bo Xilai, Planning Minister Ma Kai and a small army of 150 government and business leaders.
11/12/2004 - 21:04 GMT - AFP