posted 09-09-2003 10:13 PM            

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CARACAS, Venezuela (Reuters) -- Venezuela declared war on Friday against what it called an unfair world trade system and urged developing nations not to subscribe to any new agreements at upcoming global trade talks next week.

The world's No. 5 oil exporter made clear it would take an aggressive stance at September 10-14 World Trade Organization negotiations in Cancun, Mexico, which aim to lower barriers to world trade.

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Venezuela's chief trade negotiator Victor Alvarez said the world's poorest countries had only a tiny share of world exports, which were hogged by rich nations: "It's clear who are the winners and losers of today's world trade system."

"We'll be taking the fight to inside the WTO," he said.

Alvarez said President Hugo Chavez's left-wing government would not negotiate over its demand, shared with other developing countries, that rich industrialized nations end "ruinous subsidies" for their farm products.

Challenging what he called the "pro-market fundamentalism" of the United States and other rich nations, he insisted on the right of Third World states to intervene heavily in their economies to promote development and fight poverty.

"Venezuela is going to propose that no new commitments be adopted (at the Cancun talks)," Alvarez said.

"It makes no sense for countries like ours to add new points to the WTO agenda when there's such a long list of issues that haven't been satisfied," he added.

Venezuela's apparent spoiling strategy flew in the face of urgent calls from the United States and Europe for concrete agreements during the Cancun meeting.

It also reflected repeated verbal attacks by populist former paratrooper Chavez against world bodies like the WTO, the International Monetary Fund and the World Bank.

The Venezuelan leader, who is accused by his foes of trying to introduce Cuba-style communism at home, has pilloried these organizations as "institutions created by empires to continue dominating the world."

Echoes of Cuba's Castro
Alvarez said Venezuela's position was shared by major developing nations like Brazil and India. But it seemed to echo views expressed by Cuban President Fidel Castro, a friend and ideological ally of the Venezuelan president.

Alvarez presented a 10-point list dismissing free trade demands by industrialized nations.

For example, he rejected calls for transnational companies to be given equal treatment with national firms in bidding for state contracts. "We're not going to negotiate our government purchases," he said.

While demanding a reduction in the subsidies of rich nations, Alvarez said developing countries should be given more time and special treatment, including financing and debt-forgiveness, to develop their farm sectors to face fierce competition in world markets.

He rejected suggestions that tough foreign exchange controls adopted by Chavez's government earlier this year and Venezuela's active membership of the oil exporters' cartel OPEC were against the spirit of free trade.

Alvarez described these as legitimate protection mechanisms. "They (the rich nations) want us to give away our resources for free," he said.