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U.S.-Brazil Group for Growth Meets, Outlines Strategies for Productivity

AUG. 27, 2003

JS-678

DATED AUG. 27, 2003
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FROM THE OFFICE OF PUBLIC AFFAIRS

 

 

August 27, 2003

 

 

U.S.-Brazil Group for Growth

 

 

[1] The United States and Brazil held the first meeting of the Group for Growth today in Washington, D.C. Formation of the Group was announced at the June 2003 meeting between President Bush and President Lula with the goal of developing strategies to raise economic growth in both countries.

[2] The U.S. delegation was chaired by John B. Taylor, Under Secretary for International Affairs at the Department of Treasury. U.S. participants included Federal Reserve Governor Ben Bernanke and Council of Economic Advisors member-designate Kristin Forbes. The Brazilian delegation was co-chaired by Joaquim V. Levy, Secretary of the National Treasury, and Marcos Lisboa, Secretary for Economic Policy, both at the Ministry of Finance. Brazilian participants included Brazilian Ambassador to the United States Rubens Barbosa and Brazilian Executive Director to the IMF Murilo Portugal.

[3] During the meeting, the delegations discussed the measures for raising productivity growth in both countries, including tax and pension reform in Brazil and the major jobs and growth legislation in the United States. The Brazilian representatives also reported on their government's initiatives for expanding access to credit for microenterprises and small-and medium-sized enterprises.

[4] "The Lula Administration is taking very significant steps to increase economic growth in Brazil," John Taylor said. "The pension and tax reforms proposed by President Lula address some of the most fundamental fiscal challenges facing Brazil. The United States strongly supports the government's efforts."

[5] "The strength of the U.S. economy provides convincing evidence of the importance of competition to foster economic growth," Marcos Lisboa said. For his part, Joaquim Levy noted that "a well developed capital market that helps funnel savings to productive investment -- including by small businesses -- is a major factor to ensure growth, innovation, and lower costs to finance public debt." Both were confident that policy measures taken by the U.S. government in recent months will help accelerate the recovery of the U.S. economy, which is expected to have positive spillover effects for the rest of the world.

[6] The Group agreed to reconvene in Brazil in the first quarter of 2004.

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