Brazil Warns Chavez: Keep Your Hands Off Mercosur

Brazil’s Luiz Inácio Lula da Silva warned Venezuelan President Hugo Chavez that "interference" by Caracas in the Southern Cone could jeopardize plans for a major gas pipeline, Brazil’s foreign minister said Tuesday.

Summoned to the Foreign Affairs and Defense Committee of the Brazilian Senate Celso Amorim was questioned about the impact for Brazil of Bolivia’s decision to nationalize its natural gas reserves and the growing influence of Chavez in the Southern Cone.

Several Senators criticized the Brazilian Foreign Affairs ministry for having included Venezuela in last week’s presidential summit between Argentinean President Nestor Kirchner, Lula and Bolivia’s Evo Morales.

The one day gathering in the Argentine resort town of Puerto Iguazu was convened hastily by President Lula da Silva to address the implications of President Evo Morales’ decision to nationalize natural gas reserves and oil refineries.

Bolivia supplies over 50% of Brazil’s natural gas demand and is also a significant provider of Argentina.

Mr. Amorim told senators that Chavez’s presence in Puerto Iguazu must be seen within the broader context of South America’s energy integration, but "our discomfort, and President Lula’s personal discomfort, with some of his actions was certainly conveyed to President Chavez".

"That disappointment was conveyed unequivocally by President Lula, to the point of saying that it jeopardizes not just the gas pipeline, but the whole idea of South American integration," pointed out Mr. Amorim.

Chavez is pushing for what detractors call a "Pharaonic" project to build a pipeline to transport natural gas over 8,000 kilometers from Venezuela to Brazil and Argentina, at a projected cost of US$ 20 billion.

Brazilian Senators asked for confirmation regarding indications that Venezuelan state oil giant PDVSA staff was training Bolivian personnel to run oil and gas facilities belonging to Brazil’s state-owned petroleum company, Petrobras, which has most at stake with President Morales’ nationalization initiative.

"I cannot confirm it. We don’t know what President Chavez’s intentions are but the fact is that when certain threats were being conveyed through the press (from Bolivia to Brazil), that happened parallel with a large presence of PDVSA personnel," on Bolivian soil revealed Mr. Amorim.

"It’s no secret that Chavez exercises influence over the Bolivian president at this delicate time," continued the Brazilian Foreign Affairs minister.

Mr. Amorim also recalled that President Chavez was present two weeks ago at another regional summit with leaders from Bolivia, Uruguay and Paraguay, an event that included strong criticism to Mercosur achievements and its two senior members, Brazil and Argentina. Strangely enough Venezuela is currently in the process of becoming a full member of the block.

Amorim said Brazilian officials have warned Chavez that "it’s not Mercosur that has to adapt to Venezuela, but Venezuela that must adapt to Mercosur. If not, we won’t reach an accord."

However Mr. Amorim was cautious about the results of the strong Brazilian position.

"We will see what happens," Amorim said.

Mercopress – www.mercopress.com

Tags:

You May Also Like

Image Salesmen

Brazilians are avid TV viewers and political parties know it. By law, parties are ...

Bradesco Expects Key Brazil Interest Rate to Jump from 8.75% to 13%

According to Bradesco Asset Management, Brazil will boost interest rates to as high as ...

Japan Premier Koisumi Wants Brazil as World Partner

Brazilian President Luiz Inácio Lula da Silva met today with the Prime Minister of ...

Brazil’s Lula Loses Some of His Moral Luster

One of the great dangers in following Brazilian politics is that you can become ...

Brazil: High-Class Crime Uses Charm as Master Key

Everyone knew that Brazil’s Banco Santos was about to go broke, including the media. ...

Brazil’s Bradesco Rated BB- by Fitch

International ratings agency Fitch Ratings has affirmed the respective International and National Insurer Financial ...

IMF Pats Brazil on the Back

The presence of children in the streets of Brazil has become so common that ...

Brazil’s Drought Made Corn and Soy Harvest Fall

The Brazilian government statistical bureau,  IBGE, reports that the 2004 grain harvest in Brazil ...

Brazilian Landless Accuse State of Turtle’s Pace Action

Between January and December 2004, Brazil’s Federal Government expropriated enough area to settle approximately ...

Dramatic Jump in Brazil’s Dairy Exports

Through August of this year, Brazil exported more dairy products than it did in ...