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Brazil Sees Serious Hurdles to Economically Integrate Latin America

Brazil's Marco Aurélio Garcia According to the Brazilian president Luiz Inácio Lula da Silva's foreign policy advisor Marco Aurélio Garcia, the lack of mechanisms to correct asymmetries and finance infrastructure projects are the biggest hurdles for Mercosur and Latin American integration.

"Integration can't be made to accentuate asymmetry. That's one of our main foreign policy problems," said Garcia in an interview with the financial publication Valor, admitting the high trade surplus of Brazil with almost all Latin American countries.

"We have not been able to advance sufficiently in national and multilateral instruments that could enable us to correct, even modestly the asymmetries problem," added Garcia.

President Lula's advisor recalled that the South Bank, which was originally created to help finance infrastructure projects, "still is a blueprint and the agreement still has to come."

"We assumed certain commitments at Unasur (Union of South American Nations) and Mercosur level, as well as at bilateral level, to develop infrastructure energy and civil construction projects, and most times we come up with non compatible means for those purposes," said Garcia.

He underlined that the credit system with guarantees is "rachitic" and Brazil's Economic and Social Development bank has been slow in becoming global while Brazilian private banks have been shy in international affairs.

However Garcia said that Brazil's preference of Latin American countries is correct, which allowed the region to become its main trade partner, as well as the destination of 50% of the country's exports.

"Brazil promotes integration with no political or ideological bias which enables us to have solid relations with Venezuela, Chile and Colombia," he pointed out.

Garcia also denied that Brazil's policies had generated hostilities in countries such as Bolivia, Paraguay or Ecuador, with which Brasí­lia has standing controversies over natural gas, electricity rates and public works construction projects, respectively.

"In Bolivia's case, the government decided to nationalize natural gas resources. We agree with that because it's the same model which we apply here in Brazil. Was there an exaggeration from Bolivia on militarizing Petrobras plants in Bolivia? Of course there was," underlined the advisor.

"In the two other cases we are open minded and willing to discuss issues."

Mercopress

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  • Show Comments (2)

  • The cure for Ch C

    wow, nothing better to do on New Year’s Day Ch. C?
    Why do you keep bringing up the %5 paved roads stat? You really are running out of bad things to say about Brazil 😛

    Have you spent any time in Brazil? Doesn’t seem to me that there are only %5 paved roads…you ever think it might be because of the VAST size of Brazil’s undeveloped land?

    No, that would require thinking outside your narrow-minded view.

    Haters always Hate, Negative people focus on the Negatives and Cowards are very brave from their computer.

    You really should find something better to do with your time.

  • ch.c.

    the lack of mechanisms to correct asymmetries and finance infrastructure projects are the biggest hurdles for Mercosur and Latin American integration.
    Especially in Brazil, where paved roads total 5 % !
    A small fraction of the other Members.
    And this despite you constantly boast your own navel !!!

    And when Brazil talk about integration, sure in your view it means Brazil has some rights to have more ONE WAY TRADE or OWT, the same rights you ask at the WTO to have more OWT with other emerging and developed countries ! smiles.
    And this of course despite you have a large trade surplus with both the other Mercosur members just as well as with the USA, Europe, China etc etc and admitted….later in the above article.
    While on the other hand you feel right to shortly increase many imports tariffs on goods you import from China, the EU and the USA !

    As to “the credit system with guarantees is “rachitic” and Brazil’s Economic and Social Development bank has been slow in becoming global while Brazilian private banks have been shy in international affairs. “
    How could it be different when most of guarantees and financial system is usually either controlled or owned by the government ?
    And it is not by having the World Highest Interests rates…after inflation…. from your Central Bank, that will stimulate your banks to take more risks, either locally or internationally.
    Furthermore it is also not by restriciting the number of foreign banks that can open shops in Brazil, that you will increase local competition to reduce their own lending rates which are by far far far…the World Highest…with Robbing Hook blessings of course !
    Rates just unheard in other Banana Republics, even in Africa….with the actual exception of Zimbabwe but due to their inflation rate.

    On the other hand, Garcia your government official is a junkie and a liar when he stated that 50 % of your actual exports are with the other other Mercosur Members ex Venezuela since this country is not yet a Full Mercosur Member !

    You admitted more than once B razil has been unfair to the 2 smallest Mercosur Members !
    What have you done since then ? NOTHING…OF COURSE !
    While in Brazilian views every signed contracts could be changed, other Mercosur members dont have such rights. Just look at
    the Itaipu water dam and its per KWH price you pay. NOT CHANGED SINCE DAY ONE SEVERAL DECADES AGO AND BRAZIL DISAGREE TO REVIEW
    AND RENEGOTIATE THE PER KWH PAID…OF COURSE !!!! Normal to continue paying a several decades old price !

    Conclusion : proven once more that cheaters always cheat, liars always lie, and hiders always hide !
    And betrayors always betray.
    Meaning what I said so many times….NEVER EVER TRUST A BRAZILIAN !

    Thus far no one has been able to prove me wrong.

    But let me state clearly once more whawt I had written more than once :

    Just ask any South American citizen who they like the least or hate the most !
    The vast majority of answers will be Brazil !

    Your continued arrogance and permanent cheating will end up being very costly.
    And you do nothing to reduce the disagreements, you always add some more heat.
    Just refer to the other article stating that “suddenly” Brazil is entitled to more Mercosur members than they have today !
    Once more you want to renegate and renegotiate your own original signature, refusing others the same rights !

    The Brazilian mentality is by far the worst one I know !
    Your real cheating and lying face always re-surface very regularly.
    You have the typical Economic Model for FAILURE !

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