BBCNews UK By Tom Gibb BBC correspondent in Sao Paulo

US Trade Representative Robert Zoellick has ended a two-day visit to Brazil in which he heaped praise on the economic policies of the new left-wing government.

But Mr Zoellick failed to win progress on the issue of free trade, the purpose of his visit.

He hoped to push forward the agenda for creating a Free Trade Area of the Americas (FTAA) by 2005.

Brazil's new left-wing leader, President Luiz Inacio Lula da Silva, has inherited an agreement between 34 North and South American nations to form a free trade area by 2005.

But while the project is a priority in Washington, there is far less enthusiasm in Brasilia.

Protecting farmers

During his visit, US trade representative Robert Zoellick insisted that everything would be on the negotiating table.

But the present US proposals do not envisage ending subsidies to US farmers.

As South America's main exports are agricultural, there's a general perception that Washington is offering a bad deal.

Brazil's president is busy trying to form a joint negotiating position with other South American nations to confront the US proposals.

A growing list of countries, including Argentina, Venezuela and Ecuador, appear to be in agreement on the need to stick together.

Deadline slips

After meetings with Mr Zoellick, Brazilian ministers said Brazil did not regard the 2005 deadline as binding.

For his part, Mr Zoellick said the US was willing to discuss agricultural subsidies, but only in the World Trade Organisation (WTO).

Many analysts believe there is no way Washington will reduce subsidies unless the European Union (EU) does the same, a prospect that remains a long way off.

The issue is likely to be the main item on the agenda when the Brazilian president goes to Washington next month to meet President Bush.

Mr Zoellick ended his visit by describing Brazil as a vital partner in the region, saying that despite the difficulties, he was convinced further conversations would bring advances.

By ROBERT J. BRODEY Special to The Globe and Mail Wednesday, May 28, 2003 - Page T3

SAN JOSÉ, COSTA RICA -- Through my bedroom window, the orange glow of morning illuminates the mist. An exotic quetzal lands on the windowsill, while a record plays an adagio for strings. This is what it will be like living in Costa Rica, I think. But as the clouds rise from the tropical slopes, the record needle dances and skips, and I tumble back to earth.

Even in the sexy Central American country of Costa Rica, toilets don't always flush and paradise sometimes seems lost.

Not so long ago, Costa Rica was a backpacker's hideaway, a stunning and inexpensive travel destination. But secrets are rarely kept for long. Every year, about 50,000 Canadians come to the country to enjoy its bounty: Surf lessons in Jaco by day, pina coladas and warm breezes by night. Hikes through the intoxicating rainforest of Braulio Carrillo and perhaps a rare glimpse of a jaguar or a long and lethal bushmaster snake.

With all these natural wonders, it's easy to see why so many tourists might dream of returning to Costa Rica to live. And some actually do. Ted MacKay, first secretary of public relations for the Canadian embassy in Costa Rica, estimates that close to 6,000 Canadians live in Costa Rica on a permanent basis.

There are many reasons people pack up and move away from the familiar and familial. Some are simply in pursuit of work opportunities or a warmer climate. For others, it's an almost spiritual calling to move abroad and explore the different ways life can be lived.

Russell Maier, a Yukon native, worked for eight months in the West Bank town of Ramallah. After the intifada of September, 2000, Maier sought peace and moved to Costa Rica, a country that has no standing army.

In a less dramatic case, my girlfriend was hired by a child rights organization in the capital, San José, and I came down with her in search of new experiences.

Soon after we arrived in January, we realized that living abroad isn't always easy. Leaving behind friends and family in Toronto and building a life from the ground up is a challenge. Words such as alienation, exaltation and depression have entered my daily lexicon. At times, my mood swings -- with their high peaks and deep valleys -- resemble the Himalayas. And yet my senses still tingle with the unexpected: A conversation with a neighbour or finding my way home through a maze of unfamiliar streets can suddenly seem like a coup.

Making a new life is a delicate process of integrating what's familiar from home -- music, sports, food (maple syrup!) -- with novel elements of an adopted community. It's a mysterious alchemy with no set recipe for success.

Depending on whether you see the glass half-empty or half-full, the list of pros and cons around life in an unfamiliar country will probably look lopsided in the beginning. In San José, for instance, health and safety seem gravely undervalued. I battle the searing pollution and the maniacal driving, which takes two lives a day in this tiny country. The pitted sidewalks and open sewers can swallow a human whole.

In bank doorways, security guards dressed in bad suits, with shotguns pressed against their chests, pose like B-movie cops with fingers always on the trigger. It's a bit overwhelming, coming from a relatively unarmed country.

It's a massive adjustment, one that can easily shatter the fantasy of living abroad. A broken water pipe in Canada may be viewed as a nuisance, but in an unfamiliar, less developed country it can be seen as evidence of incompetence or backwardness. How a person confronts these comparisons and prejudices is an indication of how he or she will adjust.

Several Canadian-run organizations offer support for new residents in Costa Rica to lessen the shock of starting over. The Association of Residents of Costa Rica disseminates legal and health information, while the Canadian embassy has a "meet and greet" every month to give newcomers and veteran residents a chance to interact.

The tourist industry in Costa Rica is a well-oiled machine. A typical visitor will spend a few blissful days in Manuel Antonio sunbathing, while squirrel monkeys play in the trees and iguanas roam the underbrush. But living in Costa Rica, one deals with the same bureaucracy as every other Costa Rican. And being Canadian provides no immunity from the headaches of daily life -- noisy neighbours, hampers filled with dirty laundry, health and financial concerns.

Locals and expats do head out on the weekends, however, for the beaches and parks that have made the country famous.

Jason Alexander Cunliffe, president of the Chamber of Commerce for Costa Rica/Canada, is optimistic about his life in Costa Rica. After five years, he has no plans to move. "Once you transcend certain language and cultural differences," he says, "Canadians and Costa Ricans have a lot in common. They're peaceful and easygoing, like us."

Francis James Pacheco, Cunliffe's associate, adds that unlike Costa Rica, living in places such as "Venezuela or Cuba can feel like you're on skates for the first time."

After three months in Costa Rica, I still feel as if I'm on skates, but my list of pros continues to grow. I do miss Toronto's multiculturalism, but Costa Rica is catching up. Fourteen years ago, when I was first here, rice and beans was pretty much the only game in town. Now, sushi, Jamaican and Asian-fusion cuisine and French crèpes are all part of the culinary landscape.

Adding to my list of pros is living near the vibrant university campus, which provides a great point of entry into Costa Rican life. I've discovered cool joints in which to hang out and sip iced cappuccinos while watching the streets buzz with activity. After only a handful of months, I no longer feel like a ghost in a foreign land. My girlfriend and I have made friends with the neighbours, the parking attendant and some expats.

Former Vancouverite Joanne Loewen, a graphic designer who now lives in Puerto Rico, says that with the right attitude you can flourish abroad. If, however, you are unwilling to understand or integrate into your new environment, always referring to locals as "these people," you won't last more than two years, she predicts.

There are many stories of Canadians moving to Costa Rica or other tropical locales after only one vacation. Not being prepared for the drastic change in language and culture can be overwhelming. Some simply flee back north.

The most important things to bring when moving don't weigh anything: learning to bend like a tree in a storm and a willingness to meet people. After all, paradise is a state of mind. Everywhere else, there will always be leaky pipes in need of fixing and potholes to be hurdled.

For more information, visit the following Web sites: The Canadian Club: www.canadianclubcr.org; The Association of Residents of Costa Rica: www.casacanada.net; Canadian embassy, Costa Rica: www.dfait-maeci.gc.ca

Wednesday, May 28, 2003
(05-28) 16:41 PDT MEXICO CITY (<a href=www.sfgate.com>AP) --

Mexican stocks rose for the second day in a row Wednesday, helped by positive U.S. markets and record low domestic interest rates.

The local stock market's key IPC finished up 17.04 point, or 0.3 percent, at 6,667.35. Volume was a solid 115.2 million shares worth 1.63 billion pesos.

The Valmex brokerage said in a report that optimism in the United States, mostly over the medium-term economic outlook, was helping U.S. shares, and Mexico was catching it.

The drop in local domestic interest rates at Tuesday's primary auction was also a factor helping stocks.

The rate on benchmark 28-day Treasury bills or Cetes, fell 0.44 percentage point to 4.91 percent, one basis point above the record low set two weeks ago.

With fixed income returns at minimal levels, "the opportunity cost of being in the stock market is very low, which is an additional reason for investing," Valmex said.

Accounting for much of Wednesday's volume, market bellwether Telmex L shares rose 0.1 percent to 15.66 pesos, and banking group BBVA-Bancomer B shares rose 0.6 percent to 9.04 pesos.

Telecommunications heavyweight America Movil L shares slipped 0.5 percent to 9.24 pesos.

SAO PAULO, Brazil (AP) -- Brazil's stocks climbed slightly Wednesday for a second consecutive session on continued signs of easing inflation and improved prospects for pension and tax reform.

The Ibovepsa index ended with 13,294 points, up 0.4 percent from Tuesday's close of 13,246 points. Volume was a moderate 742 million reals.

Investors reacted warmly to news of easing price increases over the past month, which moved the index up more than 1 percent just after the opening bell. Later, investor enthusiasm waned as markets around the world showed only modest gains.

News of a political alliance meant to push through much-needed changes to Brazil's pension and tax systems also cheered investors. Late Tuesday, the leading Democratic Movement Party, or PMDB, agreed to join President Luiz Inacio Lula da Silva's Workers' Party in what looks to be a difficult fight to implement reform.

Additionally, the market is anxiously anticipating Thursday's release of Brazil's first-quarter gross domestic product performance. A Dow Jones Newswires survey of 15 economists generated a consensus estimate for seasonally adjusted GDP growth of 0.6 percent, though some expect a negative result.

BUENOS AIRES, Argentina (AP) -- Argentine stocks climbed Wednesday to break the five-year high reached one month ago as the market registered growing confidence over fledgling President Nestor Kirchner's ability to lead the country's economic recovery.

The large-cap Merval Index gained 2.1 percent, or 13.72 points, to end at 678.03 points, while the broader General Index climbed 1.9 percent, or 579.73 points, to 30,551.76.

Wednesday's level surpassed the Merval's five-year high set April 23. Analysts said the market is embracing the early policy initiatives that have come from Kirchner's administration during his first week in office.

Volume traded was 52.7 million pesos.

Steel firm Acindar was the day's strongest performer, gaining 5 percent to end at 2.32 pesos. The promise of the massive public works project has buoyed the company's shares in recent weeks.

Privatized utility companies also posted gains Wednesday, with Telecom Argentina rising 4.5 percent to 3.23 pesos and Transportadora de Gas del Sur climbing 3.8 percent to 1.62 pesos. A review of public service contracts has been marked as a priority for de Vido's newly created cabinet ministry.

SANTIAGO, Chile (AP) -- Share prices on the Santiago Stock Exchange closed higher Wednesday, helped by gains in airline LanChile and Coca Cola bottler Andina and supported by gains of Wall Street share prices.

Chile's blue-chip Ipsa index ended up 1.6 percent at 1,224.38 points. The Inter-10 index of more liquid, internationally traded Chilean shares matched the 1.6 percent gain by rising to 119.44. Volume skyrocketed to 23.22 billion pesos.

Top gainers included Andina, whose B-shares surged another 5.2 percent to 1,030 pesos on continued speculation it might buy Peruvian peer Embonor.

Airline LanChile topped blue-chip gainers, rising 6 percent to 1,150 pesos, while Banco Santander Santiago extended Tuesday's 1.8 percent gains by 2.9 percent to 14.30 pesos.

Utilities holding Enersis continued going the other way, giving up 2.8 percent to 61.50 pesos in profit-taking.

CARACAS, Venezuela (AP) -- Venezuelan shares ended higher Wednesday even though the market's biggest stock, CA Nacional Telefonos de Venezuela, or CANTV, lost 1.7 percent as investors took recent profits.

The IBC General Stock Index, of which CANTV accounts for 40 percent, closed 3.8 percent higher at 11,532 points, continuing to a new seven-year high.

A 20 percent rise in financial conglomerate Mercantil Servicios Financieros helped the IBC overcome CANTV's slight loss. Mercantil's A shares ended at 1,710 bolivars.

Story last updated at 7:06 a.m. Wednesday, May 28, 2003 Knight Ridder Newspapers

BUENOS AIRES, ARGENTINA--Cuban dictator Fidel Castro's ability to draw more than 10,000 Argentine supporters to an off-the-cuff outdoor speech on a cold night illustrates the aging communist strongman's resurgent appeal in Latin America.

In the 1990s, when Latin American nations undertook free-market reforms that yielded economic booms, most leaders kept their distance from Castro. But most countries in the region are now in economic crisis, poverty is rising and Castro's identification with efforts to lift the poor is back in vogue.

Leftists wary of privatization and unbridled open markets now rule in Chile, Brazil, Venezuela and Ecuador. Politicians described as center-left and populist rule in Peru, Paraguay and Argentina. Only war-ravaged Colombia and Bolivia have clearly conservative presidents.

Castro stole the show at Sunday's inauguration of Argentine President Nestor Kirchner. Two years ago in Mexico, Cuba's human rights record earned him cold shoulders from regional leaders.

But on Sunday, Argentine lawmakers received Castro with thunderous applause, overlooking his recent jailing of prominent artists and dissidents and the summary trial and execution of three ferry hijackers.

On Monday night, Castro was to deliver an address at the University of Buenos Aires law school, known for promoting human rights in a country where 30,000 are believed to have been killed by military dictatorships.

Hordes of listeners, thousands more than the law school's auditorium could hold, overran security guards and trampled those inside. The event was moved outside onto university steps, where hours later thousands arrived to hear a trademark fiery Castro speech that lasted more than two and a half hours.

What is Castro's appeal? One explanation is the failure of U.S.-espoused economic reforms to narrow social gaps, followed by the election of a new batch of leftist leaders in South America who are friendly to Castro's social views.

Carlos Manfroni, a conservative Argentine political analyst, blames rampant corruption for the failure of the economic policies of the 1990s to improve the lot of the poor and for the gains of Castro supporters in South America. "When countries fail because they cannot combat corruption effectively, this discredits the free market and leads to nostalgia for positions that are more statist and protectionist," he said. "This is what opens the microphones again for the left."

Wed May 28, 2003 01:31 AM ET By Missy Ryan

LIMA, Peru (<a href=reuters.com>Reuters) - Unpopular President Alejandro Toledo on Tuesday declared a state of emergency across Peru, promising to send out the armed forces to help rein in a wave of violent strikes that has crippled transit and public services in a new challenge to a stormy presidency.

"We have decided to declare a national state of emergency for 30 days so that people can exercise their personal liberties and travel freely," Toledo said in a televised address.

"The country cannot be shut down. Democracy with order and without authority is not democracy," said Toledo, elected in 2001 on promises he would restore transparency and true democracy to Peru following the corrupt, authoritarian regime of ex-President Alberto Fujimori.

But the U.S.-educated leader's presidency has been far from rosy as social unrest mounts from poor Peruvians who complain he has not delivered on campaign promises. Toledo's approval rating now stands at an all-time low of 14 percent.

This week, thousands of farmers and health workers joined teachers who have taken to the streets, marching angrily through the capital, occupying state buildings in provincial cities, stranding passenger buses and trucks loaded with food as they block key highways with rocks and burning tires.

Millions of children have been barred from classrooms for more than two weeks, while patients stayed away on Tuesday from state hospitals as the strikes, which seek a raft of demands like salary hikes and tax cuts for farm goods, drag on.

Toledo also said he would send out armed forces and police to resume order and would reopen schools shut by striking teachers who are asking for a raise of 210 soles ($60) to their average monthly wage of 700 soles ($200).

But the government, which hails headline growth that has made Peru the fastest growing economy in Latin America, says it does not have the cash to meet that and other demands without endangering International Monetary Fund-endorsed pledges of fiscal discipline. It has offered teachers 100 soles ($29).

FIRST NATIONWIDE STATE OF EMERGENCY

"If the government doesn't change its policy of kneeling down before the IMF ... if it does not look the Peruvian people in the face ... it's going to have to go," said Jorge Vargas, a high school teacher from the northern city of Chimbote, part of a crowd of hundreds of teachers protesting outside Congress.

Following Toledo's address, legislator Luis Iberico, part of Toledo-friendly party FIM, said that the teachers' strike would be declared illegal on Wednesday.

Mauricio Mulder, a leading lawmaker for top opposition party APRA, said "I don't understand why the government is now throwing in the towel."

This is the second time Toledo has declared a state of emergency. He made the same decree in June 2002, but that measure was limited to the southern city of Arequipa amid fatal protests against the privatization of two power firms.

Peru's biggest umbrella union, CGTP, said this week it was considering calling a massive general strike in July against market-friendly economic policy.

Some analysts have warned that Peru, which is seen as wedded to an IMF-endorsed fiscal plan, must tread carefully if it is to avoid scaring off desperately needed foreign investment with strikes and protests. But others say that Peru is a safe haven among Latin American countries, like Colombia, Argentina and Venezuela, which face more serious violence and economic woes.

Even officials admit that despite a strong economy, people have yet to feel growth where it counts -- in their wallets.