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Oil exploration in Uruguay. A French vessel began this week hydrocarbon exploration operations in Uruguay's continental shelf in the River Plate. “Thales Venturer” actually was scheduled to begin April 6th., but climatic conditions postponed the first stage which now is expected to last until April 28th.

A French vessel began this week hydrocarbon exploration operations in Uruguay's continental shelf in the River Plate.
"Thales Venturer" actually was scheduled to begin April 6th., but climatic conditions postponed the first stage which now is expected to last until April 28th.
A year ago Uruguay licensed hydrocarbon exploration in 10,000 offshore square kilometers to a French company. The exploration data should be available in six months time according to a spokesperson for Ancap, the Uruguayan government oil company.
In the seventies California based Chevron Oil explored for oil and natural gas in the Uruguayan continental shelf and even had a rig operating several months, before the whole operation was cancelled since the deposits located were not considered commercially viable.
However since the boom of offshore oil exploration and exploitation in neighbouring Brazil, Uruguayan authorities are confident that new technology could lead to more encouraging results.
Although Uruguay is virtually self sufficient in hydroelectric energy production, it must import all of its oil and natural gas consumption.

Mercosur-EU talks
Mercosur and European Union talks on cooperation and trade promotion advanced significantly it the framework of the bi regional association. The talks were held in Buenos Aires and understandings on Political Dialogue and Cooperation are to be signed in the coming heads of states summit next May 17th., in Madrid, Spain.
In the more specific area of trade, Argentine sources indicated that progress was achieved in several fields: business promotion; Customs; technical rules; electronic commerce and sanitary measures regarding livestock and agriculture.
Consensus was reached in an economic cooperation draft that includes agriculture, services, fisheries, environment, consumer protection, tourism, government purchasing, electronic trade and data protection. Finally is was agreed that in the coming Madrid summit the first round of trade talks will be declared concluded and a second round, emphasizing in market access, will officially be launched at ministerial level.

Good fisheries harvest in Santa Cruz
Fisheries exports from the Patagonian city of Puerto Deseado reached 268 million US dollars last year, a 34% increase over 2000, according to an official release from the province of Santa Cruz.
Of the just over 100,000 tons, squid represented 40,382 tons, and a 70% jump over the previous year, while prawns reached 36,478 tons, 73% increase. However high seas catches of other species dropped 18,4% to 22,653 tons. Prawn and squid are Puerto Deseado's main exports equivalent to 218 million US dollars in 2001.
The Santa Cruz province release adds that 1,050 people are employed in fisheries and 17 million US dollars were invested last year in improving port facilities and services.

Chilean fish exports down
Chilean fish exports in the first two months of 2002 reached 309 million US dollars with a 19% drop compared to the same period a year ago, according to reports from the National Fisheries Association.
The greatest drop occurred with fish meal, down 41%, (62,524 tons), as a direct result of the anchovy and common sardine ban imposed to the industrial fleet operating in Chile's Fifth and Tenth region.
During the last decade the El Niño current phenomenon had a devastating impact on resources with a direct impact on the fish meal industry. The number of vessels operating in the area with that purpose dropped dramatically from 700 to 300.

Blame Congress
In spite of progress in the last round of free trade talks between United States and Chile, held in Santiago, the lack of the Trade Promotion Authority, TPA, (the former "fast track"), is becoming a growing hurdle for a definitive agreement.
Chile's leading negotiator Osvaldo Rosales said that results of the eleventh round were encouraging but without the TPA, "sensitive issues regarding labor, environment and certain aspects of agriculture, remain unchanged". "Therefore the difficulties can't be blamed on the Chilean authorities, or US President George Bush's willingness, but in the US Congress that in spite of White House prodding refuses to grant TPA, which enables the American government to negotiate trade agreements", indicated Mr. Rosales.
Mr. Rosales pointed out that in spite of the US and Chilean governments intention of signing the free trade agreement in the first half of 2002, as November approaches chances will evaporate because of mid term elections and the unpopularity of these agreements in the American electorate.
However Mr. Rosales said the overall result of the eleventh round was positive since Washington's initiative included market access both for agricultural commodities and industrial goods.
Another round is scheduled in May.
Opposition to a free trade agreement is also strong in certain sectors of the Chilean economy. Christian Democrats, junior partners in the Chilean ruling coalition, have warned they will not support an agreement that does not contemplate safeguards for small and medium farmers, who represent over 30% of the country's working force.

Plea for Argentina
Mercosur Congressional representatives requested an "urgent definition" from the International Monetary Fund, IMF, regarding financial support for beleaguered Argentina.
The Argentine situation seriously conditions the "continuity of the country and the region" points out a document delivered to the head of the IMF mission working in Buenos Aires, Mr. Anoop Singh, who met with Congress representatives from Brazil, Paraguay, Uruguay and Chile.
The document also points out that none of the political groups that supports Argentine President Eduardo Duhalde's government is prepared to admit further cuts in social expenditure.
Argentine Senator Raúl Alfonsín, and one of the IMF's harshest critics was among the group of legislators that met Mr. Singh, who was described as a "very charming person".
The document from the Mercosur Parliamentarian Standing Committee indicates that poverty in Argentina is rapidly increasing under "the current social, economic and financial crisis".
Mr. Singh described the meeting as "historic and very positive", adding that the IMF in no way is conditioning financial aid to cuts in social expenditure.

IMF "blooper"The International Monetary Fund, IMF, was involved in a diplomatic "mishap" last week when it became the first multilateral institution in recognizing a Venezuelan government that lasted just over 24 hours.
In the midst of last week's institutional turmoil with street rioting, that apparently had overthrown Venezuela's democratically elected president and former paratrooper Hugo Chaves, the IMF went even further and announced it "was ready to work with the new government in its immediate needs".
Now Mr. Chaves is back in power following strong popular support and what is believed to be an understanding with the Venezuelan Armed Forces regarding some of his most radical initiatives, while Mr. Pedro Carmona the powerful businessman the IMF greeted as the new president, is under house arrest.
However, IMF's Director for Foreign Relations Thomas Dawson also revealed that the allegedly radical and pro-Cuban dictator Fidel Castro, Chaves administration was closely "coordinating" financial aspects with the multilateral organization.
"We hope these contacts continue (with the new government) in the appropriate direction", said Mr. Dawson. Last February with the local currency under strong speculation, the Chaves administration let the Bolívar float freely loosing between 15 and 20% of its value against the US dollar.
It is estimated that since Mr. Chaves took office in oil rich Venezuela with the support of almost 60% of the electorate, lack of confidence in his economic policies and fear about some of his most radical initiatives have led to the fleeing of over 40 billion US dollars from the country.

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