Lat-Am Watch

News and views on and from Latin America.

Tuesday, May 13, 2008

EU awaits continental cacophony

The fifth Latin America-EU summit kicks off today in Lima. By Friday at least 45 heads of state from both continents are expected to have descended on the Peruvian capital to discuss alleviating poverty, food shortages and combating climate change as well as the more mundane aspects of bilateral trade.

Rafael Correa, Alvaro Uribe and Hugo Chavez in better days.

It’s a unique opportunity, a chance for the region to capitalize on its increasing economic importance. ‘Made in Lat-Am’ is in greater demand than ever before thanks not only to agricultural products and raw materials, but also petrochemicals and airplanes to name just a few. Meanwhile sustained economic growth across the region means that Latin America is an ever-increasing market for European goods.

And there’s more. “For the EU, Latin America is more than just a market,” Spanish europarliamentarian José Salafranca was quoted as saying. To demonstrate that point the EU has seen fit to ennoble Mexico with the title of “strategic partner,” at the coming summit. That honour was only recently bestowed on Brazil and other strategic partners are the likes of China and Russia.

“We Europeans have concentrated our attention on Asia while the Asians discovered Latin America,” the German chancellor Angela Merkel admitted last week, adding “we should hurry if we want to maintain our influence in the region.” She is scheduled to visit Brazil, Mexico and Colombia.

With so much attention being lavished on Latin America, you’d think that local leaders would be eager to get their act to together and show some singularity of purpose. Even the merest semblance of togetherness would greatly increase the region’s bargaining position vis-à-vis the world’s most formidable economic bloc. Unfortunately, nothing could be further from the truth.

For, as the Europeans show up here with their harmonious repertoire, their Latin America hosts sound about melodious as a tone-deaf marching band. Discord has become the regional soundtrack.

For starters, this week’s summit will see presidents Álvaro Uribe, Hugo Chávez and Rafael Correa meet for the first time since a row between their three countries brought Latin America to verge of war earlier this year. Colombia and Ecuador seem no closer to a truce than when Correa cut diplomatic ties with his neighbour in March. The row started over an incursion into Ecuadorean soil by Colombian troops hunting FARC commander Raul Reyes on March 1.

Ever since his slaying, Reyes’ telltale laptop computer has become the basis for Uribe’s allegations that both his leftist colleagues are in league with the FARC. Yesterday, Correa was pleading his defence with Spanish Prime Minister José Luis Zapatero, hoping to get in the EU’s good books ahead of the summit. It’s a tactic that might work for Ecuador, but it certainly won’t make the region any more homogenous.

Meanwhile, Venezuela’s Hugo Chavez has been of little help in bringing the two neighbours closer together, but rather edges Correa on. On Sunday he said Colombia was “capable of provoking a war only to justify US intervention in Venezuela,” dismissing allegations that he was also a FARC-backer. Not much harmony there.

Chávez’ beef with Colombia goes back at least to when his invitation to negotiate between Colombia and the FARC was revoked in November of last year. The release of the hostages held by the guerrillas, among them the Franco-Colombian Ingrid Betancourt, is high on the EU’s agenda. Yet a joint effort to get them freed is about as likely now as Reyes’ resurrection.

Venezuela has troubles further a field as well. Ties with Mexico were frayed in an encounter between Chavez and former president Vicente Fox in another summit in 2005. Leaders of the two countries haven’t met since and México has been making serious efforts to curb Venezuelan influence in Central America and the Caribbean.

Venezuela also still hasn’t managed to get its Mercosur membership ratified. Brazilian senators and the Paraguayan parliament are still blocking the Caribbean nation from inclusion in the trade bloc. Chavez would be mistaken if he thought the election of left-leaning Fernando Lugo in Paraguay would bring that ratification any closer – the new parliament, made up of liberals, conservatives and nationalists, is no more likely to welcome the Bolivarian revolutionary than the former.

Not that Venezuela’s joining Mercosur would suddenly bring euphonic tunes to the continent. After all, the trade bloc itself is as divided as can be. Uruguay and Paraguay are traditionally resentful of Brazil and Argentina for forcing their mercantilist policies on the smaller two. Meanwhile, the row between Uruguay and Argentina over the construction of a pulp mill on the border continues to fester. The roadblocks that so damage the Uruguayan economy have only worsened with Argentina’s farmer’s dispute.

Bolivia, when not at war with itself, is also causing its neighbours an increasing headache. An answer still hasn’t been found to the gas shortages in Argentina and Brazil, to which Evo Morales’ Bolivia holds the key. Morales continuing nationalisation of the fossil fuels branch is unlikely to inspire much confidence. Meanwhile, winter fast approaches...

If that wasn't enough, one of the only few enduring alliances on the continent is on the verge op collapse as Chávez decreed the nationalization of the Argentine-controlled Sidor steelmaker yesterday. That could mean an end the romance between the Kirchner couple and Chavez. Although, to be fair, that honeymoon relied more on the contents of the suitcases than on the heartfelt passion of the threesome involved.

Thus far, the state of the region. When our leaders sit down on Friday, we should hope for unanimity, progress and harmony. But expect a cacophony.

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