UPDATE 1-Brazil’s Rousseff criticizes rich countries at UN

by on September 25, 2012 2:40 pm GMT

Tue Sep 25, 2012 10:40am EDT

(Reuters) – Brazil’s President Dilma
Rousseff harshly criticized the economic policies of rich
nations at the United Nations on Tuesday, saying they were
failing to end the global crisis and harming emerging markets
such as hers.

Rousseff told the U.N. General Assembly that orthodox fiscal
policy “has been worsening the recession in the developed
economies, with repercussions for the emerging countries.”

Rousseff said that expansionist monetary policy practiced by
the United States and Europe had caused “imbalances” in exchange
rates of developing nations such as her own. That makes Brazil’s
exports less competitive, she said, forcing it to take other
measures to protect its industries.

“We cannot accept that legitimate trade defense initiatives
by developing countries be unfairly classified as
protectionism,” Rousseff said.

Brazil and the United States publicly sparred last week over
Rousseff’s recent decision to raise tariffs on about 100 foreign
goods. The tariff increases were within the rules of the World
Trade Organization, but fueled concerns over growing
protectionism among emerging markets.