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

2. Biographical Highlights President of Brazil (1995-2003)  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

4.  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.  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.  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. * Explicit acknowledgement of the “central position” of USA in world order * Limits “special relationship” 1997 – Clinton visits Latin America 2001 - Cardoso at White House  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

8.  * 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, BrazilflagBrasíliaBrazil

9.  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  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

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

11.  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  Japan ◦ Important trading partner ◦ Did not participate in purchase of privatized Brazilian companies ◦ Ties strengthened with Japanese- Brazilian community

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