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Headlines: Lula to visit Argentina; “Let's not mix passion with approval”; Closer to Mercosur citizenship; Brazil's GDP shrinking; ENAP attracts 290 million US dollars; Santiago and Austin, 2004 Culture capitals

Lula to visit Argentina

Brazilian elected president Luiz Inacio Lula da Silva will be visiting Argentina next November 25th for a two days meeting with officials and representatives of the Argentine society. Marco Aurelio García, Mr. Lula's International Affairs advisor made the announcement after meeting with Argentina's Deputy Foreign Affairs Minister Martín Redrado. The agenda agreed by García and Redrado in Sao Paulo includes interviews with President Eduardo Duhalde, Congressional leaders, businessmen, academia and the presidential hopefuls in Argentina's coming elections. Mr. Lula who has made a point of stressing that his administration's foreign policy will be centred in boosting Mercosur, following his victory in the run off said his first foreign visit would be to Argentina, which with Brazil "is one of the two main engines of Mercosur". Mr. Redrado revealed that in the meeting with Mr. García a four years Mercosur agenda was considered including bilateral trade, coordination of macro economic policies and cooperation in technical, scientific and cultural fields. Mr. García also announced that elected president Mr. Lula da Silva has been officially invited by President Raúl Lagos to visit Chile before he takes office. Chile's cabinet Secretary Heraldo Muñoz in Brasilia said that Mr. Lula is very much interested in Chile's programs to eliminate extreme poverty, improve health and education and the overall functioning of the Chilean economy. "We want Brazil to be successful because that will have positive effects for the whole region", indicated Mr. Muñoz.

"Let's not mix passion with approval"

Brazilian elected president Lula da Silva criticized the Venezuelan and Cuban regimes in an interview published in The Washington Post a week after his victory. Mr. Lula distanced himself from presidents Hugo Chavez and Fidel Castro and anticipated he will try to improve relations and have closer links with the United States. When asked about President Chavez whom Mr. Lula described as a friend, he questioned his lack of political wisdom and search of a consensus with the opposition. "I've advised him to be more political. A president can't be fighting everybody at the same time. More political wisdom is needed". As to Mr. Fidel Castro, also a good friend, Brazil's elected president was even more distant. "We're not going to confuse the passion of my generation for the Cuban revolution and what it meant then, with an outright approval of the Cuban regime today", since its important that people enjoy political, religious, cultural and economic liberties. Mr. Lula during the interview insisted with his moderate speech that ensured him a landslide victory and made it a point that one of his administration's objectives was political and diplomatic stability. "We will keep to the rules, respect private contracts and honour commitments with international credit organizations". "Americans can be confident we will honour all of Brazil's commitments, and it's not my purpose to implant in Brazil a 100% government run economic model", said Mr. Lula. The elected president recalled that the United States is Brazil's main trade partner and added that "I don't believe government has to manage or direct all companies. The government's job is planning, stimulation development with incentives and if necessary attract foreign enterprise"

Closer to Mercosur citizenship

Mercosur member countries have agreed to sign a free transit treaty in the region for citizens of the block, during the Home and Justice Ministers meeting taking place in Salvador, Brazil. The countries involved are Mercosur full members, Argentina, Brazil, Uruguay, Paraguay and associate members Chile and Bolivia. "The agreement will be ratified by Mercosur presidents in the coming December summit, and the definitive implementation will obviously depend on the ratification by the Parliament of each country member", indicated Brazil's Justice Minister Antoino Freitas, who is hosting the Ministers meeting. The free transit or free movement agreement means Mercosur citizens will be allowed to reside and or work in any of the member countries, with their pension rights recognized. "We value the agreement as a contribution to development and not as a threat", said Mr. Freitas, adding it will help to curve current abuse and blackmail against those workers who migrate looking for better working conditions "Many times they are forced to work undocumented because of bureaucracy and legal limitations, and exposed to exploitation by unscrupulous employers". Once the agreement is ratified Mercosur citizens will be entitled to a good conduct record certification that will enable access to permanent residence in any of the member countries. "We've talked the issue over with legislators and expect that the Brazilian Congress will ratify the agreement towards the end of the first half of 2003", remarked Mr. Freitas.

Brazil's GDP shrinking

Brazil's economy that has been shrinking for the last few years has dropped in 2002 to twelfth place in the world ranking. According to a Global Invest report published in the Jornal do Brazil in Rio do Janeiro, Mexico and Korea this year figure in places ten and eleven, pushing Brazil one step down in the ladder. Global Invest is an independent think tank working with data collected from the IMF, Central Banks and the Organization for Economic Cooperation and Development. The report indicates that Brazil's Gross Domestic Product has been growing at an annual average of 2% for the last few years that has been more evident since the country's currency underwent a significant devaluation against the US dollar in January 1999. As a consequence Brazil's GDP, measured in US dollars, dropped strongly and continues to do so since this year the Real experienced a 40% depreciation and the economy slowed down to less than 1,5%. This means Brazil's GDP will reach 483 billion US dollars by the end of the year compared to Korea's 497 billion US dollars, and Mexico's 587 billion. United States leads the world with a GDP equivalent to 10,5 trillion US dollars, a considerable increase from 8,7 trillion in 1998 in spite of the current recession that has extended to most of the developed world. Japan comes second with 4,375 trillion US dollars; Germany follows with 2,02 trillion; Britain 1,6 trillion; France 1,5 trillion; China 1,25 trillion; Italy 1,2 trillion; Canada 749 billion and Spain 678 billion US dollars.

ENAP attracts 290 million US dollars

The Chilean government expressed satisfaction after successfully floating 290 million US dollars of the country's Oil Company ENAP, in the US market. The acquisition of the bonds by thirty institutional investors from the United States and Europe "ratifies trust in ENAP and the interest of international investors in Chilean companies", remarked Minister of Mining Alfonso Dulanto. This week's operation completed a first emission of 70 million US dollars last October and according to a release from the company completes ENAP's financial strategy for 2002, which is oriented to finance liabilities and an investment program involving 363 million US dollars. The ten year ENAP bonds were floated with an interest rate of 6,85%, which means a risk spread of 275 points over US Treasury Bonds, and 67 points above Chilean sovereign bonds. The bonds were rated A- by Standard & Poor and BAA 1 by Moody's, the risk rating agencies. Demand actually reached for 500 million US dollars. ENAP's profits in the first quarter of 2002 reached 55,5 million US dollars compared to the same period a year ago.

Santiago and Austin, 2004 Culture capitals

Santiago de Chile and Austin, Texas, were nominated as Culture capitals for 2004 according to a release from Barcelona, Spain. The American Culture capital is an initiative sponsored by the Organization of American States, OAS, with the support from the Latinamerican and European Parliaments. The purpose of such nominations is to promote inter-american integration; contribute to a better understanding between the peoples of the continent, respecting diversity, and finally promoting the selected cities. The Organization that runs the American Culture Capital has its seat in Barcelona, and the first to be nominated was Mérida, Mexico in 2000, followed by Iquique, Chile in 2001 and Maceió, Brazil in 2002. From 2003 onwards, two cities have been named, Panama and Curitiba in Brazil.