MercoPress. South Atlantic News Agency

Chile/Peru alliance to face “Asian challenge”

Chile praised Peruvian elected president Alan Garcia and proposed both countries team up to do business and jointly addresses the “Asian challenge”.

Chilean Foreign Minister Alejandro Foxley described Alan Garcia's coming visit this week to Chile as a "special gesture", a "rather unusual initiative", which is happening before the elected president takes office (July 28). "It's a very good sign that our friendship policy towards neighbouring countries is proving fruitful", said Mr. Foxley in an interview with Santiago's El Mercurio.

When asked how Chile would address relations with the new administration in Peru, --a country with which there's a long history of rivalry, even armed conflict--, Mr. Forxley said the "road of cooperation".

"I think that the political, economic and social project Mr. Alan Garcia has in mind for Peru is very close to that of Chile's ruling coalition" underlined the Chilean minister.

"I'm seriously considering a Chile-Peru business trade alliance to confront the "Asian challenge". Chile is ready to cooperate with Peru at government, private sector and university levels. I hope to talk about it when Mr Garcia visits us", added Mr. Foxley.

Chile has free trade agreements among others with United States, Canada, European Union, South Korea and is currently discussing with Beijing and Japan similar deals.

"When our production capacity is overwhelmed by demand, then associating with other countries becomes crucial" indicated Foxley. "And there's where Peru must play a leading role and we must consolidate cooperation".

Foxley also revealed that Santiago would be ratifying the Treaty of Rome creating the International Criminal Court, which Chile signed in 1998, despite possible United States sanctions.

"It will be approved. And it seems to me that the United States will have to face reality" since "it would be absurd ... (for Washington to sanction Chile), one of its best friends ... in the region, which they point to as a showcase... Nobody would understand it, not in Chile or in Latin America or in the United States".