Foreign Policy of Cardoso Administration (1995-2003)

1. FOREIGN POLICY DURING THE CARDOSO Administration (1995-2003)

2. Fernando Henrique Cardoso • Son of a Army general from Rio de Janeiro • Academic • Political economist • Graduate work in USA • Founder of Brazilian Social Democratic leaders • Reputation gained by taming inflation during administration of President Itamar Franco Biographical Highlights President of Brazil (1995-2003)

4. Change with Continuity: Basic Theme of Cardoso Foreign Policy • Emphasis on “soft power” • Brazilian sift power used to reshape international environment with “regimes”more favorable to Brazilian interests • Military power downplayed • Military balance seen as less important • Emphasis on economic power

5. Autonomy through Participation • Transitory economic recovery • Economic downturn 1986-87 • Writing a new constitution (1987-88) • Constitutional convention dominated by traditional political class • Two rounds of voting for president if no candidate has first round majority • Senate & Chamber of deputies favors traditional areas of the country

6. Refurbishing the National Image • Rebuild international credibility on the basis of internal stability • Trustworthiness facilitates some foreign investment • International good will toward Brazil increases • Tony Blair • Bill Clinton • Residual negative feelings toward Brazil persist • Low rate of economic growth limits limits possibility of using foreign policy to gain strategic advantage

7. Cardos: Relations with the USA • 1997 – Brazil signs Nuclear non-proliferation Treaty • Put off FTTA for as long as possible • Relations grew more rocky toward end of Cardoso’s second term * Explicit acknowledgement of the “central position” of USA in world order * Limits “special relationship” 1997 – Clinton visits Latin America 2001 - Cardoso at White House

8. MERCOSUR & South America • * Cooperation with Argentina’s Carlos Menem • * Mercosul consolidated as a customs union • Joint adherence with Argentina into NNPT • Defense of democracy • * Movement to transform Mercosul into a common market (Oro Preto Protocol – 1994) • Mercosur/Mercosul's flag in the city of Brasília, Brazil

9. Cardoso & WTO (membership – 153 countries) established 1995 • Functions:• Administering WTO trade agreements• Forum for trade negotiations• Handling trade disputes• Monitoring national trade policies• Technical assistance and training for developing countries• Cooperation with other international organizations • Signed Marrakesh Protocol – created WTO • Priority given to multilateral organizations • Assistance provided for Brazilian business • Subsidies to Bombardier by Canadian gvt. • Pressure on U.S. pharmaceudicals to break patents on NIV/Aids drugs

10. Cardoso & the Beginning of BRIC • Charles Tang, Chairman of the Brazil-China Chamber of Industry & Commerce • Cardoso & Putin • Trade increases but remains small * Cardoso visits China twice * In 2002 China becomes # 2 trading partner with Brazil Trade between Brazil & India hardly increases

11. Other Strategic Partners • Japan • Important trading partner • Did not participate in purchase of privatized Brazilian companies • Ties strengthened with Japanese-Brazilian community • Portugal • Purchase of privatized state companies • Increased Brazilian presence in Portuguese speaking Africa • Peace keeping mission to Angola • Cuba • Relations stable • Cardoso constant critic of U.S. economic embargo

12. January 1, 2003 Democratic transition from from Fernando Henrique Cardoso to Luiz Inácio Lula da Silva