July 14, 2006
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U.S.-Brazil Group for Growth Meets

Washington, D.C. - The United States and Brazil held the fifth meeting of the Group for Growth today in Washington, D.C.  President Bush and President Lula launched the Group in June 2003 with the aim of advancing the shared goals of strong economic growth, job creation and poverty reduction.  The last meeting of the Group was held in August 2005 in Rio de Janeiro, Brazil.

Today's meeting was co-chaired by Timothy D. Adams, Under Secretary for International Affairs at the U.S. Department of Treasury, and Luiz A. Pereira da Silva, Secretary for International Affairs at Brazil's Ministry of Finance.  U.S. Treasury Assistant Secretary for International Affairs Clay Lowery also participated.

The Brazilian and U.S. delegations discussed the need for fundamental reform of the IMF's governance structure to better reflect global economic weight.  The Group supported a two-step process.  The first step, at the Singapore Annual Meetings, would be a limited quota increase for a small number of unequivocally underrepresented countries.  The second step, to be completed by 2008, would deliver far-reaching reforms including a revised quota formula with GDP as the predominant variable, a broader recipient list for emerging market quota increases, and an increase in basic votes.  The Brazilian and U.S. delegations agreed to work together to advance these reforms ahead of the Annual Meetings.  The Group also discussed options for debt relief and reform at the Inter-American Development Bank.

The other focus of the discussion today was the urgent challenge of reducing poverty and inequality in this hemisphere.  Participants agreed on the critical need to provide the poor with the opportunities and tools they need to benefit from growth: access to capital, education, infrastructure and markets at home and abroad.  Under Secretary Adams and Secretary Pereira reiterated their support for an ambitious outcome from the WTO Doha Round negotiations and agreed on the benefits of trade for growth and poverty reduction.

Secretary Pereira described Brazil's successful efforts to increase formal job creation and reduce poverty and inequality while fostering macroeconomic stability and sustainable economic growth: "The Brazilian poor have been the main beneficiary of low inflation and increased efficiency of the economy."  Under Secretary Adams stressed: "Spreading opportunity to those left out and left behind is the highest U.S. economic priority in the hemisphere.  I am impressed by how much we and our Brazilian colleagues agree on what needs to be done."

The Group agreed to reconvene in Brazil in the first quarter of 2007. 

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