Brazil, Argentina oppose commodity price regulation

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Brazil and Argentina came out Friday against a French proposal to be put to the G20 to regulate commodity prices whose recent rises are blamed for a spike in food costs.

"We have similar positions" on that and other issues, Brazilian Finance Minister Guido Mantega said in a joint media conference with his Argentine counterpart, Amado Boudou, in Sao Paulo.

"If there's one thing that has to be done, it's encourage growth and production and not hinder it," he said.

Boudou said the two countries -- both major commodity exporters -- would present the united front in a G20 finance meeting in Paris next Friday and Saturday.

"We agree to increase supply in our countries or transfer technology to other countries.... But the discussion can in no way look at regulating commodities prices," he said.

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.

© 2011 AFP

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