South American, Arab leaders hold first summit

Brazilian President Luiz Inacio Lula da Silva called for a new era of trade and commerce between South America and the Arab world yesterday at an unprecedented summit, while the Arabs insisted on securing political support for the Palestinian struggle.

Addressing the opening meeting of Latin American and Arab leaders in the futuristic Brazilian capital, among them princes and emirs in traditional robes and headgear, Mr Lula also spoke of the need for more democracy in both regions.

"This is a brave meeting with ambitious objectives. We want to take concrete steps in the fight for development and social justice," Mr Lula, a former factory worker who is carving out a role for Brazil as a voice for the developing world, said.

But the Israeli-Palestinian conflict, rather than economic links, was dominating many agendas. Algerian President Abdelaziz Bouteflika said that while he supported "South-South" trade it was in the political world that true cooperation would be gained.

Mr Lula wants summit participants to identify business opportunities that will open up new relationships between poorer regions long dominated by the world's most powerful economies. He proposed this summit after a Middle East tour in 2003 as part of a drive by Brazil, the world's fourth largest democracy, to establish itself as a diplomatic force.

The Mercosur trade bloc signed a free trade pact with the six-nation Gulf Cooperation Council at the summit yesterday morning. Brazil has said it intends to double its trade with the Arab world to $15 billion over the next three years.

But in what could become the overriding theme, the draft of the final declaration contained passages supporting the right of people to resist occupation, a sign of support for the Palestinians in the struggle against Israel.

And while condemning terrorism, it also calls for a global conference to define the meaning of terrorist. Washington and the Israelis have expressed concern, believing this could offer support to anti-Israeli militant groups such as Hizbollah, whom they deem terrorists.

The draft also said a Palestinian state should be based on the pre-1967 war borders and Israel should withdraw from all occupied Arab territories to those lines. Israeli settlements, including in East Jerusalem, should be dismantled, it said.

It also expresses concern over the sanctions imposed on Syria by the US.