MercoPress. South Atlantic News Agency

Argentina, Brazil agree to disagree …more discreetly

Brazilian lobby was unable to arrange a meeting of Cristina with Obama

Argentina and Brazil confirmed on Thursday their strategic alliance particularly in the face of the current global crisis challenge and also tried to bridge their differences regarding bilateral trade and claims of protectionism.

“The world crisis is forcing all countries to resource to measures that offer concrete replies to their communities”, said Argentine president Cristina Fernandez de Kirchner following an hour long meeting with her visiting Brazilian peer Lula da Silva.

“I believe protectionism is something more ample than a customs issue. A non-coordinated currency devaluation or fiscal benefits can also be described as “fiscal” protectionism; so please let us not talk of customs and tariffs only when we address protectionism”, insisted the Argentine president in Casa Rosada next to the Brazilian leader.

However, Lula da Silva said it can be considered “normal” that countries adopt protectionist measures in times of crisis although he warned, “it is necessary for international trade to flow normally”. He added “let us not get nervous, but at exceptional times, exceptional measures are implemented”.

Earlier in the day talking to Argentine journalists Lula da Silva said that Brazil’s policy is that the more protectionism “the less chances we have to solve the global crisis; the more freedom, better chances to solve the crisis. We need to convince people that with free trade we have better chances of getting out of the crisis, and faster”.

Mercosur junior partners Uruguay and Paraguay have complained bitterly about non tariff barriers imposed by Argentina on trade, and so have Brazilian exporters. However since Brazil is Argentina’s main trading partner, and Brazil prefers a stable Argentina in the region, Brazilian diplomacy has acted with velvet gloves towards Buenos Aires.

“Having different opinions does not mean having bad bilateral relations”, said Mrs. Kirchner while Lula da Silva added that “whenever differences emerge we’ll hold all the necessary meetings to find a way out”.

Lula da Silva added he was convinced that both Brazil and Argentina are committed to keep improving relations and advancing to ensure “that bilateral trade keeps improving”.

The recent summit of the Americas and relations with the Obama administration also attracted much interest given the so called “new beginning” of relations with Washington and expectations that President Barack Obama has generated in the hemisphere.

“All of us from Obama, including Chavez and Evo (Morales) understood that we need a new relation between the region and United States”, underlined Lula da Silva. However one question irritated the Argentine president.

Allegedly Brazilian diplomats unofficially lobbied strongly for a bilateral meeting in Trinidad Tobago of President Obama with Mrs. Kirchner allegedly as a signal of support, political and financial, for Argentina from the United States.

Such a meeting never occurred and the only Latinamerican presidents that have had face to face private talks with Obama are precisely Lula da Silva and Mexico’s Felipe Calderón.

“If that was so, it’s not my style of politics and it would have been a diplomatic problem”, replied Lula da Silva.

In more practical issues Mrs. Kirchner announced that both countries have decided on closer links in the airspace industry, in digital television technology and have named a committee of technicians to consider “common standards for the elaboration of foot and mouth disease vaccines”.

Finally Mrs. Kirchner announced that with the support of President Lula da Silva she would be sending a letter to the G20 proposing the incorporation of ILO. International Labour Organization to the debates.

“At G20 we heard the very valuable opinions from IMF, World Bank, UN representatives, and we believe that it’s important that workers should also have a voice at G20. They are after all who are most urged for a quick end to the global crisis”.