Brazil opposes French plan for commodity prices

15th February 2011, Comments 0 comments

Brazil said Tuesday it opposed a French plan to impose regulation on commodity prices, saying it could have "negative effects" on major suppliers such as itself.

"Brazil is totally opposed to a mechanism of control or regulation of commodity prices," Finance Minister Guido Mantega told reporters, reiterating a position he gave last week.

France has said it plans to use its chair of the G20 group of big developed and developing nations to push for commodity price regulation in a bid to block what it saw a speculation in the market of food crops such as grain and cereals.

Food prices around the world have surged in recent months, prompting some observers to say resulting unrest was one of the factors in the revolutionary zeal sweeping the Middle East.

France plans to hold discussions on the issue in a G20 finance meeting to be held in Paris Friday and Saturday.

Mantega said possible solutions to rising food prices could be that G20 countries encourage agricultural production in poorer nations, and that "the rich countries could work to eliminate the subsidies they give their farm products."

© 2011 AFP

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