Weekly Report - 6 January 2004

Trade is not the only area where Lula da Silva's Brazil is rebelling against `asymmetrical' international arrangements. It is now embroiled in a contest of wills with the International Atomic Energy Agency (IAEA) over what is an `appropriate' verification régime for its new uranium enrichment facility, due to start producing next year and intended to make Brazil a net exporter of enriched uranium by 2014 (WR-03-42). The IAEA wants access for spot inspections, much as will be the case for Iran and Libya.