Venezuela officially joined the South American trading
block, Mercosur (Common Market of the South) on Tuesday at an enthusiastic
event at the Teresa Careño Theater in Caracas. Venezuela is the first country
to become a full member of Mercosur since its founding in 1991. Representatives
of the Venezuelan National Assembly announced yesterday that steps are now
being taken towards the creation of a Mercosur Parliament, which they hope to
form by this December.
The event was attended by the
presidents from the now five member countries Argentina (Néstor Kirchner),
Brazil (Luiz Inacio Lula da Silva), Paraguay (Nicanor Duarte), Uruguay (Tabaré
Vázquez), and Venezuela (Hugo Chávez Frías), where they signed the official
“Protocol for the Adhesion of the Bolivarian Republic of Venezuela to Mercosur.”
In perhaps a sign of things to come, although his country is
not currently a member of Mercosur, Bolivian President Evo Morales also
attended the inauguration and sat beside the other Presidents on the main
stage. During his speech, Chavez stated
that Mercosur is now entering into a new phase and that “sooner than later we
will be in La Paz signing the incorporation of Bolivia as an official member of
Mercosur.”
The Protocol establishes that except for in the case of
already specified and “sensitive products,” Venezuela and the other Mercosur
nations should achieve free trade by 2013. The exchange of “sensitive products” will have until 2014 to be
completed. Upon signing Tuesday’s protocol,
Venezuela
has until 2010 to gradually adopt to Mercosur norms, for which it will have to
bring its own laws in to compliance.
All of the Mercosur presidents spoke at the event, to a tone
which was overwhelmingly optimistic, and in the words of Argentine President
Nestor Kirchner, rooted in the past and “projecting towards the future.” Most of the presidents spoke to the event’s
“historic” place in time, and Brazilian President Lula da Silva declared Mercosur
to be more than a mere trading block, but the “realization of a dream for
millions of Latin Americans who have, over many centuries, died believing that
it is possible to achieve integration.”
During a relatively short speech, Venezuelan President Hugo
Chavez announced, “I believe that we are laying, here, today in Caracas, a
fundamental corner-stone for the new freedom for the people of South America.”
The Venezuelan President also
thanked the other Presidents for supporting Venezuela’s entry in to the trading
block. “If you did not represent who you
represent,” he said, “Venezuela never would have joined Mercosur.” Chavez remembered first suggesting
Venezuela’s wishes to enter in to the trading block 7 years ago to the then Mercosur
President from Paraguay. “How many
things have happened in 7 years”, he continued. “You have to be profoundly optimistic.”
Chavez supported the call from
current Paraguayan President Nicanor Duarte for a ‘common project’ and Lula’s
idea for a ‘mega-state’ or a union of South American republics. Chavez also suggested a plan (like the Great
Southern Gas Pipeline) for a railroad to connect Buenos Aires and Caracas.
Chavez highlighted the importance
of Venezuela’s entrance in to Mercosur, on the night before the 195th
celebration of Venezuela’s Independence. A timely event, considering the dream of South American unity held by Venezuela’s forefather,
Simon Bolivar.
History
Mercosur was formed on March 26, 1991 through the treaty of Asuncion signed between
the four founding nations. According to
the Venezuelan Ministry of Foreign Relations, the principal objective of the
trading block was to “expand the dimensions of their national markets, through
integration, as a fundamental condition in order to accelerate the processes of
economic development with social justice.”
But as President Chavez verified on Wednesday night, the
original goals were strictly neo-liberal. Economists and social activists alike
have questioned the ability of the current members to be able to truly shift
the trading block towards a more sustainable, socially just and equitable
focus.
Nevertheless, the opening section of Tuesday night’s
Protocol signed between the five presidents, declares, “The process of integration should be an instrument in order
to promote integral development, confront poverty and social exclusion and
based on complementarity and solidarity and cooperation.”
Plans for Mercosur
Parliament
Just one day after Venezuela’s official entry in to Mercosur,
representatives of the Venezuelan National Assembly announced plans yesterday
for the creation of a Mercosur Parliament, which should be installed by
December of this year.
According to the President for the Commission for External
Politics of the National Assembly, Saúl Ortega,
further discussions will continue in Cordoba, Argentina on July 19-20.
“We are taking accelerated steps for the creation of this
political instance, which will be the legislative branch of Mercosur.”
Announced Ortega yesterday morning. “It
will be the organism of control to continue the success of this new Mercosur,
as we have denominated, with the incorporation of Venezuela, and this new concept,
and a resurrection of this pact, which before was evidently commercial, and now
it is redimensioned in the social, in the economical, in the political and
cultural.”
Venezuela-Argentina Bi-lateral Agreements
While in Caracas for Venezuela’s entrance into Mercosur, and
building off of the historic ties between their two “liberators”, Simón Bolívar
and José de San Martín, President Chavez and Argentina’s Kirchner took
advantage of the moment to strengthen their relations and sign in to affect
various bi-lateral agreements.
According to the Venezuelan Foreign Relations Ministry,
under the strategic Venezuelan-Argentinean alliance, they established a
commission to present a Strategic Alliance Plan within the next 60 days, in
order to “guarantee the integration between the two countries” and Latin
America and the Caribbean.
“We have decided to add to the agreements that we have been
signing one of greater strategic range: design a Strategic High Commission in
order to continue supporting what occurred to me to call the Caracas-Buenos
Aires Axis, which is part of this great region, of this great South American
block,” announced Chavez
Accords were also signed between the Venezuelan Housing Ministry,
the Venezuelan Ministry of Energy and Petroleum, and the Argentine Ministry of
Federal Planning and Public Investment, regarding the elaboration of a plan to
improve the conditions of habitat for the citizens of both countries; the
fulfillment of proposed objectives in the process of “exploration and
exploitation of the reserves of Argentine hydrocarbons”; the quantification and
certification of Venezuelan hydrocarbon reserves located in the Orinoco belt;
and the exploration of “alternative ways to finance the exploration, production
and industrialization of natural gas.”
Chavez and Kirchner also discussed the issuing of a
joint “Bond of the South” or “Bi-national Bonds,” which could serve to support
investment and economic growth in both countries.