MercoPress. South Atlantic News Agency

Duhalde stresses the “natural” Argentina-Brazil link.

Former Argentine president Eduardo Duhalde said that Argentina must not share an “ideological axis” with Venezuelan president Hugo Chavez and underlined the ongoing “natural” link with Brazil. Relations with Venezuela must be in the framework of “growth and development”.

Mr. Duhalde this Tuesday arrives in Spain to join president Nestor Kirchner four days official state visit delegation, from India where he participated in the signing of a framework trade agreement between Mercosur and India.

"This is the initial step for a trade agreement with India which we expect to have ready by the time Argentine finishes its pro tempore chair of Mercosur", said Mr. Duhalde who holds the title of president of the Mercosur Permanent Representatives Commission.

"India with a population of over a billion, of which 300 million are middle class consumers, is an excellent partner for Mercosur and will help us diversify trade", added Mr. Duhalde. India and Mercosur are negotiating a preference list of 900 products. Mr. Duhalde also anticipate a similar understanding with China in the coming months.

As to President Kirchner's visit to Spain Mr. Duhalde described it as crucial for attracting investments, as well as being present in the inauguration of the Argentine stand in the International Tourism Fair. However the more controversial issue will be with Spanish companies and banks that dominate most of Argentina's privatized public utility companies and have had their rates frozen since December 2001.

The Argentine government position is that the privatized public utilities for several years were charging Argentine consumers rates in US dollars three times the international average and not complying with the investments established in the contracts, "so now they will have to wait; they exaggerated profits", underlined Mr. Duhalde.

As to the "ideological axis or convergence" between Argentina, Brazil and Venezuela proclaimed by Venezuelan president Chavez and criticized by the United States Assistant Secretary, Bureau of Western Hemisphere Affairs Roger Noriega, Mr. Duhalde denied such a "figure" and fiercely condemned "Mr. Noriega's intervention in domestic affairs".

"Relations will keep improving. The true axis must be shared between Argentina and Brazil. If this relation continues to advance the Andean countries will naturally integrate, but not by an "ideological axis" with Venezuela but rather one of growth and development. We must work on the idea of the Latinamerican unity, since the concepts of geography and trade are changing in the whole world".

Mr. Duhalde visited India together with Brazilian president Luiz Inacio Lula da Silva.