MercoPress. South Atlantic News Agency

With Brazil's prodding, CAN closer to Mercosur

The Community of Andean Nations, CAN, agreed this past weekend to accelerate the decision making process with the purpose of achieving a free trade agreement with Mercosur by the end of the year and so be better prepared for the coming United States sponsored Free Trade Association of the Americas, FTAA.

Meeting over the week end in Colombia, CAN members, Bolivia, Ecuador, Peru, Venezuela and Colombia committed their efforts to a road map and timetable so that CAN-Mercosur negotiations can be completed by December 31, 2003.

The "Quirama" Declaration also expressed CAN members' willingness to a "reflection policy" period regarding the controversial FTAA in spite of the current negotiations.

"In this summit we've decided to link closer with Mercosur and search for a clear objective regarding FTAA", said Bolivian president Gonzalo Sánchez de Lozada.

If the announcements effectively become true, a new formidable South American trade block would emerge: on the one side CAN member countries that represent 120 million population and a GDP equivalent to 300 billion US dollars, on the other Mercosur plus associates (Argentina, Brazil, Paraguay, Uruguay and associates Chile and Bolivia) who make up a population of 236 million and a GDP or 890 billion US dollars.

"If at any moment I believed in the possibility of both groups fully integrating, this is it", remarked Venezuela's president Hugo Chavez.

However reality and experience indicate that CAN members have previously made similar announcements but have never gone beyond the pompous declarations.

But this time with Brazilian president Luiz Inacio Lula da Silva prodding, --who besides made a brief visit to the summit meeting--, chances have increased considerably.

President Lula da Silva appealed to his counterparts the creation of a strong South American block to face the FTAA negotiations

. "Brazil conceives the integration of Mercosur and CAN as the appropriate tool to reach a correct balance between the strength of both blocks", indicated President Lula da Silva to his colleagues from Bolivia, Ecuador, Colombia and Venezuela.

Mr. Lula da Silva also asked CAN member countries to closely monitor the coming FTAA negotiations and denounce any "US protectionism attempt".

"Fair and just negotiations mean the US effectively gives evidence of willingness to open its market, to eliminate all those barriers that impede are main production such as agriculture and textiles, among others", indicated the Brazilian president.

US farm subsidies and anti dumping legislation are the most irritating points for Latinamerican countries in the framework of FTAA negotiations that should lead to the start of a free trade association extending from Alaska to Tierra del Fuego by January 2005.

Some left leaning South American regimes such as those in Ecuador and Venezuela reject the so called "neo-liberalism" economic model the United States supposedly is interested in imposing with the FTAA.

Other countries such as Colombia, Bolivia and Peru that have closer links with Washington in other fields do not question US intentions but support Brazil in condemning agriculture protectionism.

Some even look with retracted admiration the recent bilateral free trade agreement signed by United States with Chile.

Colombian president and host of the summit, Alvaro Uribe was quiet determined on the issue, "CAN-Mercosur negotiations do not exclude other negotiations".

Lucio Gutiérrez, president of Ecuador that will be holding CAN's chair for the next six months pointed out that "Andean countries can negotiate Mercosur access individually", the only request is that they keep "CAN informed and are ready to receive recommendations".

Venezuela president Hugo Chávez revealed that probably some time in August CAN and Mercosur presidents will hold an extraordinary summit to advance in the two blocks integration.