FROM THE OFFICE OF PUBLIC AFFAIRS

June 23, 2004
JS-1738

Statement by U.S. Treasury Secretary John Snow following meeting
with
Brazil President Luiz Inácio Lula da Silva and Finance Minister
Antonio Palocci

U.S. Treasury Secretary John Snow met today with Brazil's President Luiz Inácio Lula da Silva and Finance Minister Antônio Palocci in New York to discuss economic developments and relations between the two countries.  Secretary Snow congratulated President Lula and Minister Palocci on the acceleration of Brazil's economic growth, strong export performance, and job creation.  President Lula and Minister Palocci outlined their strategy for next steps in reforms to sustain high growth, job creation, and poverty reduction.

"We are seeing the results of the leadership of President Lula and his economic team," Secretary Snow said.  "Real interest rates have fallen nearly 10 percentage points since last summer and the Brazilian economy is responding.  Brazil is well positioned to benefit from higher global growth.  The stage is set for increasing gains for the Brazilian people. "

"We are strongly committed to work closely with Brazil as a critical driver of growth and rising living standards in the Hemisphere," Secretary Snow said.

Secretary Snow and Minister Palocci also discussed the useful role that the U.S.-Brazil Group for Growth is playing as a forum for advancing strategies for increasing economic growth in both countries.