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Brazil’s Lula Invites Central America to Join Mercosur

Presidents Lula and Elias Antonio Saca The president of Brazil, Luiz InΓ‘cio Lula da Silva, during his official visit to El Salvador invited Central American nations, which are grouped in the SICA, Central American Integration System, to join Mercosur and at the same time strongly promoted the use of ethanol in the region.

"We wish to see SICA associated with Mercosur," said Lula addressing the II SICA-Brazil Business Forum, which convened over 150 businessmen from Central America and from the visiting Brazilian delegation into El Salvador City.

"Negotiations for a free trade agreement between Central America and Mercosur have been a challenge for Brazil and our Mercosur partners for some time. We can't depend on a few economies to look for new market niches," the Brazilian leader stressed.

Lula said that trade between Central America and the four full members of Mercosur had jumped 280% in four years to 2007, from US$ 594 million to US$ 1.7 billion.

El Salvador president, Elias Antonio Saca, said that Central America has the conditions and opportunities to attract foreign trade. "Central America has become stable and reliable" he said adding that what cost Europe over six decades "we're achieving it much faster."

From neighboring Guatemala President Alvaro Colom announced he's prepared to reach a bilateral trade agreement with Brazil if the Mercosur-SICA association process is delayed.

"If by October the process has not advanced Guatemala will begin bilateral talks with Brazil," said President Colom.

The Brazilian president as has become usual in his overseas incursions defended the development of the ethanol industry as an option for fuels.

"Central American countries must be the first in making clear the controversies that have been intentionally created regarding bio fuels by the developed countries."

He underlined that "it's possible to combine the production of a new energy matrix with increasing food production with no problems."

Brazil is already cooperating technically with El Salvador for the production of biodiesel from local crops. However the facilitating bill for such an undertaking and other alternative energy sources remains stalled between the El Salvador executive and legislative branches.

The bill has been promised for over a year and a half but still the final draft has to surface.

President Saca said the initiative will be in Congress "next week," but Agriculture department sources said "a month" was a more appropriate estimate. El Salvador private sector is very much interested in biofuels as an alternative.

"One of the most important points of the forum was cooperation in biofuels, particularly ethanol of which Brazil leads in the world," said Federico Colorado president of the Manufacturers association of El Salvador.

"We hope that ethanol becomes a true option for Central America and a common effort and task, so that we can find a solution to the soaring prices of oil and fossil fuels," added Colorado.

SICA is made up of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama with Dominican Republic as associate member.

Argentina, Brazil, Paraguay and Uruguay make up Mercosur with Venezuela in the process of incorporation and Chile, Bolivia and Peru as associates.



  • Show Comments (4)

  • William Baldwin

    Don’t believe distemper

    If you have an idea or proposal, bring it forth. Pay no attention to the insidious comments bragging about what they do better. Fuel is nearly $5.00 US and climbing and nearly $200 US per barrel and also climbing.
    Now let me introduce myself. My name is William. I D/B/A a broker, US broker number; MC 635770. I am also a moter carrier, common and contract, with a hazmat endorsement. I D/B/A Techco/ East and West (north and south) US DOT 1713951, MC 628670. Now let me get to the point. I am interest in the buying and selling of petroleum and petroleum products (eg. UN 1267) I like to buy at current value and sell at $200US. I’m interested in partnering up in the global economy. In addition to petro, I can also buy and sell food, machinery, (elactrical and mechanical) and or anything else. If you may be interested, please feel free to give me a call e-mail. And lastly, owning an automobile is a luxury. Driving an automobile is a privilege. Can’t afford a licence, registration, or insurance, you can’t afford gas. Hybred fuel? I’m developing a hybred pump. It’s a smart pump. It reads luxury cars, hybred cars, and vanity licence plates and knows to charge $10.00 per gal. EU. Look, Christopher Columbus came to America with cheap Chinese gunpowder, looking for a faster way to India so that he could buy cheap Indian tea. Don’t let the Snow apes talk you down in the sale of your petro.
    William Baldwin

    πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰

  • Jose D D Franco

    Latin American Integration
    It is very difficult to believe that Latin American and the Caribbean will continue to go at it alone. I cannot wait to get my Latin American and Caribbean passport. Paraphrase—-For us the Fatherland is Latin America—Simon Bolivar

  • ch.c.

    “what cost Europe over six decades “we’re achieving it much faster.”
    SURE…….Brazil NEVER INVESTED much in Europe and Brazil had and still has Noooooo technology, in opposition to Europe.
    Facts : Lula the clown wishes to sell his stinky ethanol produced in majority by slaves like workers.

    Better yet, facts are that Brazil has NOOOOOOO brazilian car manufacturers and it was BOSCHE who invented and developed the flex fuel management engine ……NOT BRAZIL !!!!!

    Stupid question : to whom would you sell your ethanol if Germans did not invent the flex fuel engine ????

    Yesssssss feel free to continue selling your ethanol….NOT YET COMPETITIVE TO OIL……despite oil went up 400 % since you sweared everywhere ethanol was then competitive.

    Never ever trust a brazilian statement or promise…….is proven…..once more.

    Yesterday there was an article here on Petrobras and their NEW refineries that will produce fuel with 50 PPM.
    No doubt all of you are 100 % sure that this is the best fuel.
    Not so.
    In the EU fuel with 50 PPM MAXIMUM is mandatory since 2003.
    And by 2009 or in 7 months….the maximum mandatory will be 10 PPM.

    No need to say that my country had introduced the 10 PPM gasoline & diesel….since 2004 !!!!!!

    Hey hey the junkies…..you are trailing…as usual !

  • ..

    Brazil’s Lula Invites Central America to Join Mercosur
    A great news to start the week. I hope those blokes in Central America accept the invitation and jump into the bandwagon of Mercosur/UnaSur.Together, we are strong.

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