MercoPress. South Atlantic News Agency

Divided Latinamerica arrives in Vienna summit

A deeply divided Latinamerica and in the midst of several growing conflicts meets, beginning Thursday in Vienna, Austria, with the European Union 25 leaders in the framework of the two regions fourth summit.

The conflict between Uruguay and Argentina; Mercosur's junior members mounting complaints about the functioning of the regional block; Venezuela's split from the Andean Community; Bolivia's nationalization of the oil and gas industry are some of the several obstacles to be faced by the summit's attempts to reach or further advance towards a free trade agreement.

Coordinators from Latinamerica and the Caribbean met Wednesday in Vienna to attempt a consensus statement, but diplomatic sources admitted that "ideological" discrepancies have emerged threatening common ground regarding regional integration and how to address trade negotiations with the European Union.

Apparently Venezuela and Bolivia insist that economic "asymmetries" among Latinamerican countries must be contemplated in any trade negotiation and in the event of a free trade agreement there must be "safeguards for a possible invasion of European companies" into the region.

The Uruguay-Argentina conflict over the pulp mills under construction by Finnish and Spanish investors is forecasted to have a full scenario. President Nestor Kirchner from Argentina, that holds the pro tempore Mercosur chair, is expected to concentrate his speech in environmental affairs, following on his administration's strategy that the conflict is "bilateral and environmental".

Uruguay on the other hand strives for a multilateral framework and President Tabare Vazquez is scheduled to meet besides as many EU leaders as possible, with United Nations Secretary General Kofi Annan.

Bolivian president Evo Morales will strive to convince his audience of the reasons for the hydrocarbons industry nationalization which has left European and Latinamerican oil companies out in the cold.

Venezuela's decision to break away from the Andean Community because several of its members have signed free trade agreements with United States will weaken the block's stance and any hopes for advancing in trade talks.

The only hopeful group seems to be Central America which has "great expectations" of establishing the foundations in Vienna for negotiating a free trade agreement with the EU, following on similar experiences from Mexico and Chile, in spite of the rest of Latinamerica.

"Latinamerica is not arriving in Vienna at one of its best moments", admits Osvaldo Rosales from the United Nations Economic Committee for Latinamerica and the Caribbean.

"Recent conflicts only confirm the weakness of these blocks", argues Peter Hakim from the Washington based Interamerican Dialogue think-tank.

"None of the groups have taken integration seriously enough and this will not contribute to trade or economic growth until country members are prepared to strictly abide by rules and establish institutions to solve disputes", added Hakim.

These signals cause confusion in Europe which has conditioned its relation to the different groups to a strong, solid integration.

"They are signals difficult to interpret in the EU", admitted Germany's Foreign Secretary Frank Walter Steinmer, which means EU leaders "will have to consult and talk with several Latinamerican leaders to have a clear idea".

However Enrique Iglesias, former CEO of the Interamerican Development Bank and currently head of the Iberoamerican Secretariat was more enthusiastic.

"Latinamerica has its ups and downs", but the world inevitably moves towards regional integration to achieve healthy economies and attractive trade terms said Mr. Iglesias adding his job in Vienna was to act as a debate "facilitator".

Mercosur is "a reality which must be improved and adapt to current circumstances" indicated Mr. Iglesias who pointed out that in block building "there will always be problems and advances are not necessarily lineal "

"What is important is to have the political will to continue advancing and continue negotiating", underlined Mr. Iglesias.