MercoPress. South Atlantic News Agency

South America as a region to discuss measures to counter global financial crisis

Rousseff concerned with the massive inflow of cheap imports mainly from Asia

South America’s top economic and monetary authorities will be meeting in Lima and later in Buenos Aires to agree on “joint and specific actions” to address the flush of global liquidity distorting regional currencies and of unsold manufactured goods threatening jobs and industry.

The announcement was done by Argentine and Brazilian presidents, Cristina Fernandez and Dilma Rousseff in Brasilia, during the inauguration on Friday of the Argentine embassy in Brasilia.

“We must define joint and specific actions to defend our countries from the excessive liquidity that artificially revalue our currencies, and from the avalanche of manufactured goods which can’t find a market in advanced countries and impact on employment and industry in our region”, said Dilma Rousseff referring to a joint statement on the meeting.

Economy ministers are scheduled to meet next August 4 in Lima and on 11 August, Central bank presidents will converge on Buenos Aires to work out specific actions. The decision was originally agreed during the Unasur (Union of South American Nations) meeting held in Lima on Thursday, following the inauguration of President Ollanta Humala who chaired the meeting of the region’s leaders.

Rousseff pointed out the strength of South America and its excellent current economic and social performance compared to what is happening in developed countries.

“We are a very attractive and tempting region (globally) and we must face the challenge with an armour of integration, not of isolationism”, said Rousseff adding that the pace of integration must be faster and improved for which “Argentina and Brazil have a major responsibility over the rest because I believe we have higher industrial, scientific and technologic developments”.

“What a difference with other parts of the world today dominated by recession, unemployment, financial and fiscal chaos and above all by political paralysis in solving the challenges they have before them”, said Cristina Kirchner.

The Argentine president also revealed that during Thursday Unasur meeting in Lima, “for the first time the region had a shared vision towards global economic problems” adding that Colombia’s leader Juan Manuel Santos was who made the proposal of the special meetings.

With the massive inflow of dollars, South America’s currencies have appreciated sustainedly making imports cheaper and manufactured exports dearer, threatening jobs and creating asset bubbles.