MercoPress. South Atlantic News Agency

Latinamerica after closer ties with Asia

The Interamerican Development Bank, IDB, opened Sunday in Okinawa its annual general assembly and the main issue on the table has been closer trade links with Asia, and more specifically China's bid to become a member of the multilateral credit institution which has divided the region's countries.

This is the second time Japan organizes the annual assembly, (1991), and happens a month after South Korea formally joined IDB, and with the presence of an important delegation from Beijing, which is "in line with Latinamerica's with to intensify relations and Asia growing interest in the region, as a referent, an opportunity and a challenge", said IDB president Enrique Iglesias.

However China's bid has split the region with United States, Japan and Central American countries wishing to delay the entry. On the other side Brazil, Argentina and Venezuela who have increasing links with Beijing would like to see the Asian giant rapidly join IDB.

United States argues China can't join because it owes money to other multilateral organizations, World Bank, and must fill several other conditions. Japan with 5% of IDB's shares is concerned with China's growing influence in Latinamerica and the Central American countries are worried that Chinese membership will affect their close diplomatic and financial ties with Taiwan.

On the other hand China's Latinamerican supporters believe China's IDB membership would reinforce economic ties and the prospects of multibillion Chinese investments in infrastructure. Bilateral trade with the region has increased five times to 40 billion US dollars between 1999 and 2004.

Besides IDB president Enrique Iglesias who's headed the bank for almost twenty years would like to crown his departure with Beijing's entry. Membership would allow Beijing to bid for projects and contracts funded by IDB.

United States which holds 30% of IDB shares could block Chinese entry since new approvals demand the support of 80% of shareholders.