SUMMIT-SOUTH AMERICA: Mercosur-CAN Integration on 2001 Agenda

By Mario Osava Reprint | | Print |

Mario Osava

BRASILIA, Sep 1 2000 (IPS) - The signing of a free trade agreement between the Southern Common Market (Mercosur) and the Andean Community of Nations (CAN) before the close of 2001 is “an indispensable step” for the creation of a “South American space,” declared Brazil’s President Fernando Henrique Cardoso, Thursday.

The quest for the integration of the entire southern continent is the raison d’être of the meeting between the 12 South American presidents, said Cardoso. The summit opened Thursday in the Brazilian capital.

Cardoso made his statements during a luncheon with the Business Council of Latin America (CEAL), which is also meeting this Thursday and Friday in Brasilia.

Free trade between Mercosur and CAN is “an issue for the future” that is not included on the agenda of this summit, said Argentina’s President Fernando de la Rúa upon his arrival in the Brazilian capital, emphasising his differences in opinion with Cardoso.

A “solid” Mercosur is the basis for negotiations that could lead to its expansion, De la Rúa maintained.

Mercosur unites Argentina, Brazil, Paraguay and Uruguay, with Chile and Bolivia as associate members, while the CAN is made up of Bolivia, Colombia, Ecuador, Peru and Venezuela.

Cardoso defended the proliferation of trade accords, mentioning Mexico as an example of a country that diversified its ties with numerous countries and trade blocs, in addition to being a full member of the North American Free Trade Agreement (NAFTA).

He pointed to the movements underway to make Chile a full member of Mercosur, the finalisation of which is anticipated for the trade bloc’s quarterly meeting in December.

In regards to the internal disputes that have plagued Mercosur, De la Rúa and Cardoso agreed that they are “normal” and will be overcome.

The most important thing, according to Cardoso, is the macroeconomic co-ordination of a process that has already begun and which must continue toward common goals, citing the consolidation of the European Union as an example.

The South American Summit, to conclude Friday, is somewhat overshadowed by ‘Plan Colombia,’ a massive project to fight drug trafficking.

United States President Bill Clinton visited Colombia Wednesday to provide official backing for the 1.3 billion dollars in aid Washington has designated for President Andrés Pastrana’s plan, which carries a total cost of 7.5 billion dollars.

Venezuela’s President Hugo Chávez criticised the participation of the United States, saying it includes “a military component that remains unclear,” and which could fly out of control, eroding into the “Vietnamization” of the Amazon region where the drug trade is centred.

The plan also implies the presence of US military officials in Colombia, with the supposed mission of training Colombian troops, and that in itself is a risk, Chávez maintained.

It is strange, he said, that the US aid package includes 60 military helicopters, more than the rest of South America has combined. The Venezuelan president also stressed that the fight against cocaine production “requires more intelligence and multinational co-operation,” not weapons.

Several of the region’s presidents agree that the drug trade is an international problem and should be confronted with joint efforts. But they expressed concern that the US aid package will only escalate Colombia’s decades-long civil war.

De la Rúa affirmed his opposition to any foreign intervention in Colombia, stressing that the country needs more financial aid, not just from the United States, but also from other countries, including Argentina and Brazil.

Paraguayan President Luis González Macchi arrived in Brasilia defending the consolidation of democracy in South America, saying it is essential in the fight to overcome poverty, smuggling and the drug problem.

He said the continent must integrate as one trade bloc before talks on the Free Trade Area of the Americas (FTAA) are concluded. The FTAA would encompass North and South America, from Alaska to Tierra del Fuego.

Cardoso told the business community leaders gathered in the capital that private sector participation is essential for South America to establish itself as a functioning political and economic space.

He explained that Mexico’s presence at the summit was limited to observer status because the goal of the two-day meeting is the physical integration and modernisation of infrastructure in South America, for which a shared geographical area is indispensable.