Friday, December 14th 2012 - 07:46 UTC

Paraguay blasts Mercosur and Argentina and calls to follow ‘Chile’s example’

Paraguay’s industrial union, UIP, lashed at Mercosur over the incorporation of Venezuela as a full member and Argentina’s reiterated lack of respect for signed agreements and understandings.

UIP Eduardo Felippo claims Argentina does not honour even signed agreements

Eduardo Felippo, head of UIP, read a statement to the industrial lobby members at an end of the year event which also included President Federico Franco and several of his cabinet ministers.

Felippo said that in its twenty years of existence Mercosur has been unable to complete any serious integration process and has also been unable to reach a trade agreement with the European Union.

“And how in the world can we believe integration will be reached with the incorporation of countries such as Venezuela which is destroying its own production and manufacturing sectors”, added Felippo.

Regarding Argentina Felippo said “it does not respect signed agreements, it confiscates goods at its own pleasure and arrogance and to make things even worse the country is facing all kinds of demands the world over for not honouring debts”.

Felippo then in contract praised Chile: “they said NO to Mercosur” and accepted to become an associate member “while it was out in the world looking for new free trade agreements which it now enjoys in full effectiveness with 59 countries”.

“Because of this very intelligent and common sense decision Chile has access to the leading and most demanding markets of the world with a system of preferential tariffs” underlined Felippo and called on Paraguay to get closer and integrate with Chile by sharing production.

“The Chilean development way is the path for Paraguay, open economy, free markets and trade agreements with as many countries as possible; it’s time to get out of the straight-jacket Mercosur has represented for the country”, said Felippo.

Paraguay is currently suspended from Mercosur because of the removal of Fernando Lugo last June, following impeachment by the Senate supported by an overwhelming vote. However the regional block, as well as Unasur, described the action as “a rupture of the democratic process”.

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1 toooldtodieyoung (#) Dec 14th, 2012 - 07:57 am Report abuse
Regarding Argentina Felippo said “it does not respect signed agreements, it confiscates goods at its own pleasure and arrogance and to make things even worse the country is facing all kinds of demands the world over for not honouring debts”.

Good call Eduardo, you keep sayin' it like it is..............
2 Shed-time (#) Dec 14th, 2012 - 08:43 am Report abuse
If, by trading with criminals, one chooses to live by the sword, then one typically will find one is going to die by the same sword.

That's generally how life works.
3 ElaineB (#) Dec 14th, 2012 - 08:53 am Report abuse
On the positive side, it is true Chile has followed a good and steady path towards sound economic prosperity. They still have a way to go and have to deal with difficult neighbours but they really do have a bright future.
4 Shed-time (#) Dec 14th, 2012 - 09:06 am Report abuse
@3 Sure. Paraguay would do well to follow suit. As would Uruguay, and Brazil.

Mercosur is just another vehicle for argentinians to manipulate the good intentions of other people, into something quite evil that suits their purpose.
5 ElaineB (#) Dec 14th, 2012 - 09:28 am Report abuse
I think the idea of Mercosur was probably a good one but it has never really achieved what it was designed to do. Some members want the power afforded to a trading block without accepting that it means playing by the rules of that block. It probably is just not suited to the style of government evident in some South American countries.
6 travellingscotsman (#) Dec 14th, 2012 - 09:41 am Report abuse
what incredibly wise words. I never would have expected this from a unionist
7 Shed-time (#) Dec 14th, 2012 - 12:08 pm Report abuse
@6 I hope you're not talking about me! because I cannot wait for Salmondland to leave the union after your king put them into it because he'd bankrupted his nation .... again. I'm pig sick of this nonsense stereotype of Scots being good with money, which is just utter pants. You can take your 'great political leadership' with you too, so that's Tony Blair, Gordon Brown, Alistair Darling, Alistair Campbell, et cetera. The best part is of course, that when Scotland is dumped from the EU, we won't have to employ scottish citizens, because EU citizens will take precedence.

That'll give you all something to moan about.
8 JuanGabriel (#) Dec 14th, 2012 - 12:18 pm Report abuse
@7 I think he was referring to the fact that the guy the original article is about is a trade unionist...
9 briton (#) Dec 14th, 2012 - 12:36 pm Report abuse
They say,
If you cut out the rot early, you can save your self and others,

So why leave the CFK rot in there,
Cut it out and survive,
Leave it in and it will destroy you.

10 Shed-time (#) Dec 14th, 2012 - 12:54 pm Report abuse
@8 Ah, I see what you mean.... I feel a bit foolish now. La la la la la *slopes off*
11 andy65 (#) Dec 14th, 2012 - 12:59 pm Report abuse
Unity, LOL what a joke nice to hear the truth for once
12 Pirate Love (#) Dec 14th, 2012 - 01:11 pm Report abuse
“argentina” & “honour” in the same sentence? and there lies his answer,
argentina has no honour something the world is finally seeing, thankfully.
oh the joy argentina has coming, all self inflicted too, you cant buy this kind of entertainment, priceless :)))
13 Condorito (#) Dec 14th, 2012 - 01:20 pm Report abuse
“The Chilean development way is the path for Paraguay, open economy, free markets and trade agreements with as many countries as possible; it’s time to get out of the straight-jacket Mercosur has represented for the country”

Felippo has been cutting and pasting my posts!

Elaine / Shed:
One big problem for Paraguay is that it is landlocked and effectively held hostage by Mercosur. Paraguay’s connection with a pragmatic trade group (and the Pacific) is through Bolivia, but now that route has been blocked too. I was saying on another post that only 1500km from the power hungry mines of Chile and Peru, there is a massive excess of cheap Paraguayan hydro power. It would be in the interest of Chile, Peru, Bolivia, Paraguay and Pachamama to join these dots.

PS Shed: that was an amazing leap @ 7, you totally lost me for a minute. Easy on the union. Now I don’t know if andy at 11 @ lol-ing at the lack of union in the UK or lack of union in Mercosur!
14 Conqueror (#) Dec 14th, 2012 - 01:50 pm Report abuse
I suggest that, notwithstanding the past, Chile could hold out the hand of friendship to Paraguay. Perhaps Peru could join in. Paraguay must have a route to the Pacific Ocean. Arica would be a good spot. Bolivia has port facilities at Arica, I believe, but isn't really interested. Couldn't Paraguay take them over?
15 JB (#) Dec 14th, 2012 - 01:59 pm Report abuse
Nice title, “Paraguay blasts...” really Paraguay?? or just the Industrial Union??? Can the UIP speak for all the paraguay people?? i doubt it!
16 Shed-time (#) Dec 14th, 2012 - 02:01 pm Report abuse
Well, Switzerland is completely surrounded by the EU, is landlocked and does very well regardless. I think it's more to do with what you have to sell and what others need. Paraguay really should strap on a pair and just tell Mercosur they don't want to be a part of it any more, and try to get involved in Pacific-based activities.
17 Condorito (#) Dec 14th, 2012 - 02:20 pm Report abuse
It is true what you say about Switzerland, but the Swiss have very high-tec manufacturing and financial industries. Paraguay is agrarian and exports the same products as Brazil and Argentina. Paraguay needs ocean ports to get their exports to market. The Swiss are sat right in the middle of their biggest market with neighbours who respect them and their right to exist - not Paraguay’s case.

Yes, but Paraguay would still need to have a workable deal with Bolivia to make transport to Arica feasible. With Bolivia soon to be in Mercosur, I don’t hold out hope or fair treatment for Paraguay. For Paraguay to survive outside of Mercosur, Bolivia is key. Unfortunately for Bolivia and Paraguay, Evo is taking them down the wrong road. Bolivia has free access to the Pacific and is stuffed full on minerals. Investment should be pouring in to the country.
18 Elena (#) Dec 14th, 2012 - 03:48 pm Report abuse

yes, Paraguay´s problem is its geography and size, and with the actual state of Mercosur it only isolated Paraguay more. Maybe Paraguay could get an agreement with Bolivia and Peru via CAN. while Bolivia is politically closer to Mercosur, econommically it actually beneficies more with the CAN and Peru does too, including Paraguay there could help it out of isolation and Peru and Bolivia with more resources and trade. it could even get Paraguay closer to the Pacific Alliance if it wishes .

In this scenario either Mercosur gets more flexible or CAN and Mercosur merges. I dont think it will merge given CAN members already have trade agreements with other countries that could get affected by Mercosur´s tax policy and Uruguay already understood this situation given its arguments in favor of more oppenes and flexibility after Venezuela inclusion, it would even benefit more Ecuador and Bolivia in the long run, they can´t ignore geography.

That would leave Brazil, Argentina, and Venezuela to decide what to do, more flexibility or more isolation from their neigbours. Argentina and Brazil could very well manage being more isolated and Venezuela with its petrol maybe, but Argentina and Brazil definitely need to get less protectinist between each other at least.
19 Anbar (#) Dec 14th, 2012 - 03:51 pm Report abuse
“”“”and Argentina’s reiterated lack of respect for signed agreements and understandings.“”“”“

good luck with that old bean... should you ”win” anything just bear in mind that the Argentine Government will write it out of history, say it doesnt apply or you are a perfidious anglo.

20 chillyp (#) Dec 14th, 2012 - 04:45 pm Report abuse
#17 100%.

Paraguay needs alternate routes to the sea. Bolivia for sure, and possibly Brazil via rail or dredged rivers. Colorado won't deal with Morales out of ideology, rather than being realistic and practical and trying to find some way to get Paraguayan products to the Pacific.

If Brazil and/or Bolivia start making money and creating jobs shipping to and from Paraguay, they will stand up to Argentina to protect their own profits.
21 ProRG_American (#) Dec 14th, 2012 - 04:47 pm Report abuse
22 chillyp (#) Dec 14th, 2012 - 04:52 pm Report abuse
Yep, the US is a debtor nation. I remember the EP-3 incident just prior to 9/11, and am thinking of the dispute over the Sengkaku Islands. The US doesn't want a regional power to have a precedent to seize a US warship, because the State of Alabama might have defaulted on some bond held by a Chinese, Indian, Brazilian Bank.

Also, the vulture fund that holds the Argentina debt isn't the original debt holder AND is an Obama political opponent, which makes this easier for the WH.
23 Brit Bob (#) Dec 14th, 2012 - 05:07 pm Report abuse

And they just love Argentina:
24 Britworker (#) Dec 14th, 2012 - 05:19 pm Report abuse
Not that this has anything to with Paraguay but I don't think Argentina going bust right now would help the US economy, I doubt very much it's a benevolent act.
25 ProRG_American (#) Dec 14th, 2012 - 05:50 pm Report abuse
26 agent999 (#) Dec 14th, 2012 - 06:27 pm Report abuse
and what has this got to do with this article?
27 KFC de Pollo (#) Dec 14th, 2012 - 08:30 pm Report abuse
ignore the troll.
28 ProRG_American (#) Dec 14th, 2012 - 09:43 pm Report abuse
23 Brit Bob (#) “And they just love Argentina:”;
AFTA does not represent the USA. They are an organization of speculators using funds of quesationalbe origin that want to collect on the sweat of Argentines (and others). They operate from from nubulous offshore locations and do not pay US taxes. Their existence is largely unknown to the vast majority of Amricans and most of those that do, do not think very highly of them. The US Government wants to see them brought under control if not irradicated altogether.
29 toooldtodieyoung (#) Dec 15th, 2012 - 01:30 am Report abuse
25 ProRG_American

Regarding Argentina Felippo said “it does not respect signed agreements, it confiscates goods at its own pleasure and arrogance and to make things even worse the country is facing all kinds of demands the world over for not honouring debts”.

what do you think about what Felippo said???
30 Nostrolldamus The 2nd (#) Dec 15th, 2012 - 03:30 am Report abuse
All of Latin America could go the way of the bankers for all I care, I'm sure if Chavez dies in Venezuela you may witness a paradigm shift in that country as well. That, combined with Paraguay's rankle at Mercosur and Uruguay and Brazil leaning towards a treaty with the EU... it maybe a plausible scenario that Argentina is alone in 3-5 in its isolationist, anti-northern stance.

That's fine, if the others believe it's best for them to acquiesce to one-way trade that forces them to open their markets to the northerners but then sees their products detained, blocked, and turned back, or simply destroyed (after all the hard work to produce them) for “safety” reasons... it is clearly up to them to be hoodwinked in that fashion.

Argentina knows better than to trust those duplicitous, avaricious nations that have no real intention to be partners in increasing worldwide prosperity. Never were, and most certainly will not be now that they are sliding down the oily ramp of austerity and decline.
31 Shed-time (#) Dec 15th, 2012 - 06:18 pm Report abuse
@30 I think you need to read up on 'Viveza criolla', the underpinning of Argentinian culture. Which in itself professes duplicitousness and avarice. It also explains why Argentinians do naught but tell lies, kill their weaker brown folk, and mistrust each other.

Whatever you were talking about what just nonsense, once you have considered the above.
32 cornelius (#) Dec 15th, 2012 - 09:12 pm Report abuse
@31 i agree is 100% true is cultural.
33 DanyBerger (#) Dec 17th, 2012 - 11:27 am
Comment removed by the editor.
34 Condorito (#) Dec 17th, 2012 - 01:12 pm Report abuse
dany stop spamming
35 British_Kirchnerist (#) Dec 23rd, 2012 - 02:16 am Report abuse
#13 “Felippo has been cutting and pasting my posts!”

Yes thats what I thought, the resemblance is uncanny

#15 Indeed, a sloppy title, I thought at least it would have meant Franco, not that he really speaks for Paraguay either given how he came to power...

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