Reagan Warns Brazil Leader on Trade Curbs

President Reagan greeted Brazilian President Jose Sarney with a warning today that his country cannot continue to export freely if its domestic markets are closed to foreign competition.

Reagan touched on the trade tensions between the two nations during a ceremonial welcome on the South Lawn of the White House for the Brazilian leader, who is on a five-day state visit.

After a White House meeting, Sarney and his wife were guests at a State Department luncheon hosted by Secretary of State George P. Shultz.

Sarney, who unexpectedly became Brazil’s first civilian leader in 20 years when President-elect Tancredo Neves died in 1985 before taking office, is scheduled to address a joint session of Congress on Thursday.

The banning by Brazil of small computer imports is already under protest, and Reagan faces a deadline Sept. 16 on whether to retaliate against Brazil for its protectionist trade policy.

‘Vital to Economic Health’

The free flow of commerce is “vital to the economic health of both countries,” Reagan said.

“It is up to us to keep those lines open,” he told Sarney after expressing warm words of friendship. “Trade must be free and it must be fair, and the fight for free trade must start at home.

“No nation can expect to continue freely exporting to others if its domestic markets are closed to foreign competition,” Reagan said. “Prosperity must be built not at the expense of others but on the principle of mutual benefit.”