Bulletin on the Integration of Latin America and the Caribbean

Transcription

1 Bulletin on the Integration of Latin America and the Caribbean N 187 June 2013 Contents SELA participates in seminar on integration and CELAC in Cuba (1-2) SUCRE outlines strategies (2) Bank of the South consolidates (3) CAN Secretary-General to promote new vision of integration (3-4) Achievements and prospects of the Mesoamerica Project (4) National coordinators of IIRSA assess progress (4-5) PETROCARIBE holds Summit in Managua (5-6) Trade agreement between Cuba and El Salvador (6) OECS marks 32 years facilitating development in the region (6-8) Pacific Alliance makes strides with free movement of people and goods (8) UNASUR plans to create Monetary Fund of the South (8-9) WTO head calls for closer CARICOM integration (9) CARIFORUM to promote connectivity and movement of people (9-10) Central American Integration System holds summit (10-11) Briefs (11-12) - Pacific Alliance holds Ministerial Summit - Day of Latin American and Caribbean Unity Meetings on integration in July (12) SELA participates in seminar on integration and CELAC in Cuba Published by Prensa Latina News Agency, via Google News Havana, 12 June.- The future of the Community of Latin American and Caribbean States (CELAC) and the perspectives of regional integration organizations were at the top of the agenda of an international seminar held in Havana, Cuba. Organized by the International Economy Research Centre (CIEI), of the University of Havana, the meeting analysed recent experiences and challenges faced by the various cooperation mechanisms existing in Latin America and the Caribbean. CELAC, which is aimed at dealing with global issues, intends to refine the work already conducted in this area and collect experiences in the region, said Juan Pablo Rodríguez, representative of CAF-Development Bank of Latin America. During the three-day seminar, hosted at Hotel Nacional, experts from eight countries also discussed the position of the United States towards Latin America and the Caribbean and the most recent proposals for alliances between different continents. Martha Cordero, official of the Economic Commission for Latin America and the Caribbean (ECLAC), said that present integration is more comprehensive because it encompasses not only economic and commercial issues, but also infrastructure The Latin American and Caribbean Integration Bulletin is a publication of the Permanent Secretariat of SELA which was generated within the framework of the UNESCO-SELA Convention Communications for the Integration of Latin America and the Caribbean of the UNESCO International Programme for the Development of Communications (IPDC). Legal deposit: pp CS183 - ISSN: Latin American and Caribbean Economic System (SELA) - Permanent Secretariat, Apartado Postal 17035, Caracas 1010-A, Venezuela - Visit SELA's Web site in Internet: - Send your comments or suggestions to SELA to: difusion@sela.org

2 and logistics. In this connection, the expert pointed out that it also deals with social issues, such as health, education and environment, as well as political, legal, cooperation and international representation issues. The representative of the Latin American and Caribbean Economic System (SELA), Telasco Pulgar, made a presentation on the evolution of the regional integration process and its links with CELAC, saying that UNASUR, the FTA between Mexico and Central America, the Mesoamerica Project, PETROCARIBE, ALBA-TCP and the Pacific Alliance are new cooperation and integration modalities that favour greater coordination and convergence of integration in Latin America and the Caribbean, for which CELAC represents rather than an impulse, a scenario for rapprochement and promotion. Referring to the SUCRE, Pulgar pointed out that, thus far this year, more than 1,500 commercial operations were carried out in sucres for an amount of nearly US$ 700 million, through exchanges among Member States by using national currencies. Among other issues, the seminar dealt with the current situation of the European economic integration and the experiences of interest for Latin America and the Caribbean, the challenges for the Caribbean Community, and the achievements and dilemmas of the Union of South American Nations. Participants in the event included representatives from several institutions and universities of Germany, Belgium, Chile, Ecuador, Jamaica, Mexico and Venezuela, as well as Cuban research centres. SUCRE outlines strategies Taken from the SUCRE Web site Caracas, 7 June.- During an international seminar on South-South Integration, held at the headquarters of the Central Bank of Venezuela (BCV), the Chairman of the Monetary Council of the Regional Clearance Unitary System (SUCRE), Eudomar Tovar, said that the new South-South financial architecture encourages the design of State policies to strengthen economic integration and generate financing programmes. Tovar said that it is possible to strengthen ties with Africa through the SUCRE, which represents an important initiative because we aim at emerging in the areas of integration, looking for alternatives, such as the currency unit or the payments in local currency systems, in order to strengthen regional trade flows, avoid the impact of the crisis and save foreign exchange to shore up the economy and increase liquidity by using payments in local currencies. Tovar noted that expanding the economic relations of the member countries of the Common Market of the South (MERCOSUR) and SUCRE with Africa can effectively improve trade. He said that trade exchanges between Africa and South America rose from US$ 7 million in 2002 to US$ 39.4 million in The objective is to strengthen intra-regional trade by encouraging exchanges with Africa for diversification. He reported that 1,500 transactions in sucres have materialized so far in 2013, amounting to 550 million sucres, equivalent to about US$ 670 million dollars. Every day there are more stakeholders interested in this system with so many good prospects. This system is strengthening and consolidating the monetary area where it is positioned, he added. Among sucre-related projects, Tovar underscored the creation of the Bank of the South as a system of payment in local currencies and a liquidity fund aligned with the countries of ALBA-TCP and MERCOSUR. Integration processes are necessary to cope with crisis and underpin our economies to strengthen the financial independence of our regions, he said. During his participation in the international seminar on South-South Integration, Tovar pointed out that this common currency unit, established by Venezuela, Cuba, Nicaragua, Bolivia and Ecuador in 2008, started with six transactions worth 10 million sucres in 2010 its first year of operation increasing to 2,646 operations for the amount of 852 million sucres in The event brought together international delegates specialized in economic integration from Africa, Central America and Venezuela, who shared their experiences as regards the issue of monetary union. 2/

3 Bank of the South consolidates Taken from the UNASUR Web site Caracas, 12 June.- The Bank of the South is aimed at promoting the integration of Latin American countries and conducting joint projects for the development of peoples, while respecting sovereignty and total independence from major global financial centres. This opinion was shared by the financial authorities of Argentina, Bolivia, Brazil, Ecuador, Uruguay and Venezuela, who gathered in Caracas to hold the first meeting of Ministers of Finance and Treasury of the newly-created institution, whose founding agreement came into effect on 3 April During the meeting, held in the headquarters of the Central Bank of Venezuela, the technical teams of the countries made strides with organizational and operational aspects. The Board of Directors is expected to meet in at least 15 days. One of the main functions of the Bank of the South is financing development projects in strategic areas for member countries, particularly in key sectors of the economy and social issues, with the purpose of reducing poverty and social exclusion. It also provides for the establishment of special social solidarity funds and for response to emergencies resulting from natural disasters. Venezuelan Finance Minister Nelson Merentes said that the Bank of the South will finance the design of joint projects for development and integration of its member countries. We have just concluded the first meeting of Ministers of Finance and Treasury to quickly launch the Bank of the South. We discussed about capital; the States already have the corresponding assets; the Administrative Council is established, and the Presidents (of the respective Member Nations) will talk to decide who will be the Chairman of the bank, he explained. Merentes considered that this financial institution was created as a new instrument that will adapt itself to the reality of this new political vision in South America. It is the result of a technical work that has been conducted in the last few days in Caracas and we have made great progress. Within 15 days the Administrative Council will meet and soon we will be granting the first credit, he said. He explained that the Council of Ministers of the Bank of the South is scheduled to hold another meeting by July, but before that there will be another meeting of the Administrative Council to materialize the initial capital contributions, which will be provided by phases. Remember that this is conducted in stages. In the first one, each country is going to provide a percentage (of the total contribution that should be given to the Bank). We should provide US$ 80 million in the first few days, then the capital will continue to increase, Merentes said. The meeting was attended by Venezuelan Foreign Minister Elías Jaua, Minister of Economy and Public Finance of Argentina, Hernán Lorenzino, the Minister of Economy of Bolivia, Luis Arce, the Secretary of International Affairs of the Ministry of Finance of Brazil, Carlos Marcio Cozendey, the Minister of Foreign Affairs of Ecuador, Ricardo Patiño, the Minister Coordinator of Economic Policy of Ecuador, Patricio Rivera, and the top official responsible for the area of Finance of Ecuador, Minister Fausto Herrera. CAN Secretary-General to promote new vision of integration Taken from the Andean Community Web site Lima, 17 June.- Pablo Guzmán Laugier from Bolivia officially assumed the position of Andean Community Secretary-General, with the firm commitment to fulfil the mandate handed down by the Andean Council of Foreign Ministers and the Commission to advance the design and crafting of the new Andean Community vision. He pointed out that with the presentation to the Ministers last Saturday, by ECLAC and the Getulio Vargas Foundation, of studies for the reengineering of the Andean Integration System, the time has come to launch the construction of the new Andean Community. Guzmán Laugier announced that a series of forums, seminars and lectures will be held within the next thirty days, with special guests invited to contribute their opinions and recommendations to the process of reflection on the new CAN. 3/

4 The new Secretary-General assumed his position at the head of the Andean Community General Secretariat in a ceremony that was held at the organization s headquarters in Lima. We are experiencing a moment of creation, of the founding of a new Andean Community based on its original principles and adjusted to the new times in which we are living, he emphasized, addressing the group of people who will accompany him in the CAN General Secretariat and assured them that they will be proud to have taken part in this new stage of the refounding of the new Andean Community. Achievements and prospects of the Mesoamerica Project Taken from the Mesoamerica Project Web site San Cristobal de las Casas, Chiapas, 21 June.- The Secretary of Foreign Affairs of Mexico, José Antonio Meade Kuribreña, welcomed counterparts and senior officials from Central America, Colombia and the Dominican Republic to a meeting aimed at reviewing the Mesoamerican dialogue and cooperation processes. The meeting followed up on the commitments contained in the joint communiqué of the Heads of State and Government of the countries of the Central American Integration System (SICA) and Mexico, adopted at the Summit held on 20 February 2013, and reviewed the agenda of the Tuxtla Dialogue and Concertation Mechanism concerning migration, security and economic issues and investment, among others. In the opening session, Meade called upon counterparts and officials of the region to explore new ways to deepen and strengthen trade, political and cooperation links. The government of President Peña Nieto has reaffirmed Mexico's commitment to free trade, capital mobility and productive integration, including identifying new opportunities for trade exchanges to expand and revitalize Mexico s relations with Latin America and the Caribbean, he said. Meade recalled that Mexico s trade with the countries attending the meeting reaches slightly over US$ 18 billion annually, which accounts for about 42% of its total exchanges of goods with Latin America and the Caribbean. We want a region that stands out in the world for being competitive, dynamic, inclusive, prosperous and peaceful, he said. In the meeting, Elayne Whyte, Executive Director of the Mesoamerica project, made a presentation on the achievements and prospects of the Mesoamerica Project in the areas of transport, electrical interconnections and telecommunications infrastructure, trade facilitation and initiatives in the social area. Participants in the debates included officials from Belize, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Dominican Republic, as well as representatives of the Inter-American Development Bank (IDB), the Inter-American Institute for Cooperation on Agriculture (IICA) and the Central American Integration System (SICA). The activities focused on five thematic areas: political dialogue mechanisms, security, economic relations and investments, migration and cooperation for development. At the end of the meeting, participants agreed on the need for continued dialogue to consolidate a regional priority agenda that allows Mesoamerica to project itself as a space of peace, security, social inclusion, prosperity and integration in the 21 st century. The delegations pledged to continue with the implementation of integration strategies within the framework of the Mesoamerica project. This includes strengthening infrastructure with a regional impact in each one of the countries, in order to facilitate integration and promote trade, investment and generation of jobs. During the meeting, Mexico committed resources from its Trust Fund for Infrastructure for Mesoamerican and Caribbean countries in order to support potential projects for an amount of up to US$ 500 million. National coordinators of IIRSA assess progress Published by Agencia Andina, Peru Lima, 26 June.- The XXII Meeting of National Coordinators of the Initiative for the Integration of Regional Infrastructure in South America (IIRSA) and the VII Meeting of the Coordinating Committee of the South American Council of Infrastructure and Planning (COSIPLAN) were carried out in Lima. 4/

5 These events were organized in accordance with the Work Plan 2013 of COSIPLAN, of the Union of South American Nations (UNASUR). They were intended to evaluate the progress and status of the activities of the Work Plan 2013 and review the calendar of activities for the second half of the year. The meetings also dealt with specific issues, such as the transfer of the Pro Tempore Presidency of COSIPLAN and the approval of the adaptation of its regulation to the general regulations of UNASUR. These activities were carried out within the framework of the Pro Tempore Presidency of COSIPLAN, held by the Ministry of Transport and Communications (MTC) since July 2012 and, as a whole, they were aimed at strengthening the physical integration process in South America. The meeting was opened by the Deputy Minister of Transport, Alejandro Chang, on behalf of the Minister of Transport and Communications, Carlos Paredes. A year ago, we took over the Presidency of COSIPLAN and, with the help of all of you and the IIRSA Secretariat, we have conducted the activities foreseen in the Work Plan, said Chang. He noted that, on this occasion, an assessment was made of all activities carried out during this year in order to highlight the positive aspects and make the necessary adjustments, so as to move forward in the development of the activities and projects scheduled for the second half of In addition, he said that this meeting was aimed at reviewing the activities carried out within the framework of IIRSA, as the technical forum of COSIPLAN, in which there has been progress, especially as regards the execution of infrastructure projects. This involved follow-up at all levels, including physical implementation, a review of the project portfolio and the validity of priorities for each project, mainly because the time is drawing near when the Presidency of COSIPLAN will be transferred to another country. Participants in the meeting included delegations of the governments of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Peru, Suriname, Guyana, Uruguay and Venezuela, as well as representatives of the General Secretariat of UNASUR and the Secretariat of IIRSA. PETROCARIBE holds Summit in Managua Taken from Venezuela s MICEI Web site Managua, 29 June.- The Heads of Government and State attending the VIII Summit of PETROCARIBE, held in Managua, Nicaragua, agreed to strengthen the areas of transport, productive chains, tourism, trade and social and cultural integration, optimize the enhancement of productive capacities of peoples, and create socio-economic spaces between regions. In their Final Declaration they adopted the following commitments, among others: - Ratify the approval by the Ministerial Council of PETROCARIBE of the terms of reference and the work plan submitted by the Ad Hoc Working Group to study the creation of a PETROCARIBE economic zone within the framework of its 10th Ministerial Council, which includes a cross-sectoral and multi-disciplinary assessment of the commercial, economic, financial, scientific, technological and legal aspects of the five structuring programmes: transportation and communications, productive chains, tourism, trade, and social and cultural integration. In this connection, they urged the Working Group to comply with the time frames agreed to by the delegations in order to strengthen, streamline and consolidate the PETROCARIBE integration mechanism. - Designate senior officials with capacity for decision-making to discuss and outline strategies for developing the proposal of the PETROCARIBE economic zone. - Support the proposals for strengthening cooperation in the area of air transport among Member countries of PETROCARIBE, taking as a reference the proposal for developing air transport in the Eastern Caribbean. - Include the signing of the respective bilateral memorandums of understanding for the supply of fertilizers by the Venezuelan company PEQUIVEN S.A., which provide for establishing the terms and conditions of continuous and direct supply of urea, aimed at strengthening agricultural production and food security; while confirming the commitment to consolidate PETROCARIBE by expanding the mechanism to new areas of cooperation to establish activities for promoting agricultural development beyond the energy sector. 5/

6 - Ratify the resolutions adopted by the meeting of the X Ministerial Council of PETROCARIBE, conducted in preparation for this meeting, which reflect the intense work carried out during these consequential and periodic meetings and show the strategic importance of PETROCARIBE for the development of our peoples and their future. - Instruct the Council of Ministers of Economy and Trade of PETROCARIBE to meet as soon as possible and carry out the necessary coordination with the objective of evaluating innovative forms of joint ventures in productive sectors, so as to consolidate regional economic independence. - Agree to hold the IX Summit of PETROCARIBE on the island of Dominica. Trade agreement between Cuba and El Salvador Taken from the ALADI Web site Montevideo, 18 June.- The Republic of Cuba proceeded to deposit in the General Secretariat of ALADI the partial scope agreement signed with El Salvador on 19 September 2011, which will enter into force on 1 August This is an agreement signed between an ALADI member country and a developing country in Latin America within the context of the provisions of Article 25 of the 1980 Treaty of Montevideo (TM80). That article allows member countries of ALADI to sign agreements of various kinds with other LAC countries. Under this modality, Cuba has already signed agreements with the Caribbean Community (CARICOM) and Guatemala. The agreement with El Salvador is the third one under this modality. The agreement, which aims to strengthen existing trade relations between the parties, contains commitments on tariff preferences, elimination of non-tariff restrictions on bilateral trade, rules of origin, sanitary and phytosanitary measures, standards, technical regulations and evaluation of compliance, trade defence, dispute settlement and cooperation. At the ceremony to deposit the agreement, the Secretary-General of ALADI, Carlos Chacho Álvarez, said that the event highlighted, once again, the willingness of the Republic of Cuba to honour its commitment with the integration of Latin America, assumed in July 1999 when it completed its accession to the 1980 Treaty of Montevideo, becoming the 12th member of ALADI. At the same time, Álvarez thanked El Salvador and invited it to join the major Latin American integration project of ALADI. In turn, Ambassador Carmen Zilia Pérez Mazón, Permanent Representative of Cuba to ALADI, reiterated her country s support to the Latin American integration process and noted that, thanks to this agreement, 71% of products from El Salvador will enter Cuba on a duty-free basis, protected by a legal framework that provides confidence and predictability. In this regard, Carlos Abarca Gómez Ambassador of El Salvador to Uruguay, acknowledged the role of ALADI as a reference in regional integration and noted that the agreement, in addition to eliminating tariffs and non-tariff measures, contains an important section in the field of educational and technological cooperation that will promote academic and scientific research ties between the two countries. OECS marks 32 years facilitating development in the region Taken from the OECS Web site Castries, 18 June.- June 18th 2013 marked 32 years since the establishment of the Organisation of Eastern Caribbean States (OECS). Thirty two years of facilitating efforts by the nine Member States to further develop the people of the OECS region through various programmes and projects, in several cases with the help of the international donor community. Much attention has been given to two of the key pillars of economic development in the OECS namely Agriculture and Tourism; collectively because of the nexus of the two sectors and individually through specific needs. The OECS Secretariat is coordinating a collective Plan of Action by Member States towards enhancing the region s Agriculture Sector. Other interventions include training in Information and Communications Technology for persons associated with the Agriculture sector, with particular reference to the collection and management of critical data and related information. There are also increased efforts towards enhancing Agriculture Food and Health Safety Systems in Member States. In Tourism, work is being advanced on the implementation of an agreed OECS Common Tourism Policy. 6/

7 Programmes and policies are being formulated and harmonized in other areas across the Member States of the OECS Economic Union which can yield further significant benefits to the people in the OECS in areas such as Manufacturing, Construction, Trade Policy and Trade Facilitation, Transportation, Energy, Ocean Governance, Environment as well as Information and Communications Technology. Of special importance is the OECS E-Government for Regional Integration programme which has advanced Information and Communications Technology utilization through the movement towards the electronic transformation of the public sector in the Member States. Tax E-filing and E-procurement, for example, will improve the efficiency of the public sector, ease the price paid by consumers for goods and services, and enhance investor confidence in the OECS. Work on the preparation of an OECS Development Strategy, incorporating all of these areas, among others, is well advanced with the development strategy among the extended focus areas at the recently held 57th meeting of the OECS Authority. The bastions of functional cooperation in the OECS remain solid, sustained and meaningful to the people of the region. In health there is the bulk procurement of pharmaceuticals which quite timely will switch to the first electronic-procurement system in the Caribbean on June 20th 2013, during this week s observance of the OECS 32nd Anniversary. The outlook for this is even brighter with specialists anticipating even more affordable costs for medicines and medical supplies to the people of the region. Under the guidance of the Eastern Caribbean Central Bank, the Eastern Caribbean or EC dollar remains robust, constant, steadfast and unshaken in exchange value amidst the global economic spill. The Eastern Caribbean Civil Aviation Authority, the Eastern Caribbean Supreme Court and OECS Joint Diplomatic Trade Missions in Brussels and Geneva stand out internationally among the beacons of OECS Integration and Trade. Programmes continue in many other key areas such as Climate Change Risk Reduction; part of a lager Environmental Management and Sustainable Development agenda, Juvenile Justice Reform and Education. A most defining moment in the history of the OECS to date has been the operationalization of the OECS Economic Union. In 2013 the OECS region embraces two years since its Independent Member States commenced operation of the OECS Economic Union; a new development designed to enhance the way of life for people of the region in the long term. The commencement of the OECS Economic Union followed the historic 18 June 2010 signing of the Revised Treaty of Basseterre. The Treaty, which entered into force on 21 January 2011, creates a single economic and financial space covering participating OECS Member States, and sets the stage for deeper OECS integration where it is intended that within the single financial and economic space all factors of production, i.e: goods, services, capital and people will move without hindrance. This will provide direct benefits to the people of the OECS, by facilitating seamless travel for purposes of gainful employment, setting up business, trading, education, as well as for leisure. Since then, deeper OECS integration has been further manifested through the commencement of the free movement of people across the Member States of the OECS Economic Union on 01 August May 2012 saw the first meeting of OECS Heads of Government and Leaders of the Opposition under one roof to discuss issues relating to the OECS Economic Union. Friday, 10 August 2012 marked a further successful outcome; the Inauguration of the OECS Assembly, headquartered in Antigua and Barbuda. Through the OECS Assembly, the people of the OECS Region have the opportunity for their issues to be discussed and debated publicly in a regional forum. The OECS Assembly s first official sitting took place on 26 March The OECS Assembly is one of five principal organs of the OECS Economic Union. The others are the OECS Authority, the Council of Ministers, the OECS Commission, and the OECS Economic Affairs Council. Very recently Montserrat, one of the founding fathers of this Organization became the seventh OECS Member State to ratify the Revised Treaty of Basseterre (RTB) granting them full participation in all governance structures established under the RTB including the OECS Commission, the OECS Assembly and the Economic Affairs Council. The celebration of OECS Day is in order but the work goes on as OECS Member States move towards broadening their relationship with other territories and further deepening the Economic Union towards enhancing the lives of the people of the region. 7/

8 The Chairman of the OECS, Prime Minister of Antigua and Barbuda Baldwin Spencer, is to make an official address on Tuesday 18 June, OECS Day as part of the 32nd OECS Anniversary activities. The OECS was established on 18 June Its Member States are Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Anguilla and the British Virgin Islands. Pacific Alliance makes strides with free movement of people and goods Published by LaTercera.com, Chile Santiago, 6 June.- The founding agreement of the Pacific Alliance was signed in Paranal on 6 June 2012 and it has already liberalized 90% of exchanges of consumer goods. Free movement of people and student exchanges are some of the key accomplishments made by the Pacific Alliance one year after its creation. The founding agreement of the Pacific Alliance was signed in the Paranal Observatory, in the North of Chile, on 6 June 2012, even though the process had begun a year earlier in Lima, when the Heads of State of Chile, Colombia, Mexico and Peru decided to establish this union for the creation of a deep integration area within the framework of the Latin American Pacific Arc. The idea was to move progressively towards the free movement of goods, services, capital and people. At present, more than 90% of mutual exchanges of goods have been liberalized and the goal is to reach 100% in the near future. Today, Colombian, Mexican, Peruvian and Chilean citizens can travel freely in the four countries, without the need for visas. The Alliance expects that in the future the citizens of its member countries can work freely in any of the nations that make up the group, with social security guaranteed. In the area of education, the number of young people studying in another Member State of the Alliance has increased. On the economic front, the Business Council of the Pacific Alliance was created. Meanwhile, export promotion agencies are developing a work plan for joint seminars on promotion of investment and trade fairs, and share offices and resources in markets such as Istanbul and, pretty soon, in Morocco. In a memorandum of understanding signed last year, tourism authorities agreed to carry out the same type of joint activities. In terms of foreign representation, the Member States of the Pacific Alliance will open a joint embassy in Ghana this year, and other embassies will be establish soon under the same scheme. Currently, the Pacific Alliance counts on nine Observer countries (Australia, Canada, Costa Rica, Spain, Guatemala, Japan, New Zealand, Panama and Uruguay). Last month, Costa Rica was accepted to join the Alliance once it ratifies the free trade agreement signed with Colombia, as well as the framework agreement of the Alliance. It is expected to do so before the end of the year. In March, Panama also requested adhesion to the Alliance. UNASUR plans to create Monetary Fund of the South Published by AVN News Agency, Venezuela Quito, 9 June.- The countries of South America in the Union of South American Nations (UNASUR) have planned the creation of a Monetary Fund of the South with reserves that allow for addressing emergencies in the member states, the Foreign Minister of Ecuador, Ricardo Patiño, said. It can be used to bail out any country, large or small, without the dictates and conditionalities of the International Monetary Fund, said the diplomat, according to a report of the Public News Agency of Ecuador and South America (ANDES). Patiño expects the Fund to be the next step as part of regional initiatives, after the creation of the Regional Clearance Unitary System (SUCRE) and the Bank of the South. In this connection, the First Council of Ministers of Finance of the Bank of the South will take place on 12 June to revise and consolidate documents, statutes and operation policies of that financial entity. Patiño explained that the difference between the Bank of the South and the Monetary Fund of the South is that the latter will be to respond to emergencies. If a country has a problem with its balance of payments, its exports or any other type of 8/

9 problem and needs to finance a budget hole that it may have for the short term, let s say for the next six months, the projected Monetary Fund could serve to help that country, he said. In this regard, he said that the Heads of State of UNASUR will gather in the next few months to officially launch the Bank of the South, which will finance, among other projects, a South American rail network connecting all the countries of the region. The Bank of the South is made up of seven Latin American countries: Argentina, Brazil, Ecuador, Venezuela, Bolivia, Paraguay and Uruguay. WTO head calls for closer CARICOM integration Taken from the CARICOM Web site Georgetown, 12 June.- The Director General of the World Trade Organisation, Pascal Lamy, has emphasised that the region needs closer integration. Speaking at the launch of the Caribbean Community (CARICOM) Regional Aid for Trade Strategy in Port au Prince, Haiti, Lamy said the strategy sought to build on the promise of a region free of barriers by identifying transformative projects that support closer integration. The Caribbean needs closer regional integration. And as you celebrate the 40th anniversary of the signing of the Treaty of Chaguaramas this year, I think it is a fair question to ask how the region can accelerate the pace which I witnessed some ten years ago when I was still the EU Commissioner, and how it can honour the ideas of Williams, Burnham, Barrow and Manley the founding fathers of the integration movement, he added. Lamy said the best way to honour the architects of the Caribbean Community was to recommit to regional integration as the most successful and economically viable route towards greater and sustained development for the region. The region, the Director-General said, had made some initial but crucial steps in concretising the role that Aid for Trade could play in its economic development. Lamy identified Belize and Jamaica as having launched two excellent national strategies, both of which, he said, were profiled in Geneva, headquarters of the WTO, as examples of best practice. CARIFORUM to promote connectivity and movement of people Published by Pueblo, via Google Santo Domingo, 15 June.- The Ministers of the Caribbean Forum (CARIFORUM) concluded a one-day meeting with the promise of promoting regional connectivity and facilitating the mobilization of people, goods and services flows. In the special meeting of the Council of Ministers of CARIFORUM, Percival Marie of Dominica was elected new director of the forum, taking over from Iván Ogando, of Dominican Republic, who completed his two-year term. The agenda also included a review of several regulations aimed at strengthening the institutional framework of this regional organization to make it more efficient and adapt it to the new global reality. The event was inaugurated by Dominican Foreign Minister Carlos Morales Troncoso, with a call to strengthen regional integration to relaunch the region s presence on the global stage. Accompanied by the Secretary General of the Caribbean Community (CARICOM), Irwin La-Roque, Morales welcomed the ministers attending the meeting, expressing his confidence that the meeting will make important strides to achieve a stronger institution and a more prosperous Caribbean. There are many threats that should prompt us to speed up the pace of our integration, and now more than ever, we need institutional mechanisms to boost regional dialogue for integration, Morales said. At the meeting, the ministers reviewed the 11th issue of the European Funds for Development (EFD), which will govern cooperation from 2014 to 2020 and are estimated at 165 million euros (220.2 million dollars). The ministers also discussed the main areas of interest for the Caribbean as regards regional cooperation with the European Union within the framework of the XI EFD, with emphasis on the promotion of cooperation, integration, trade, and support to sustainable social and economic development of the region. 9/

10 At the opening ceremony, Morales said that integration will help Caribbean economies to increase their exports to major markets and effectively respond to global crises. He also noted that the opportunities provided by the Economic Partnership Agreement (EPA) with the European Union and the Bilateral Agreement on Free Trade between Dominican Republic and the Caribbean Community (CARICOM) will contribute to consolidate economic and commercial relations in the region. Morales highlighted the achievements made by the Pro Tempore Presidency during Dominican Republic s term, which concludes next month, including major reforms in governance, as well as technical and administrative structures of CARIFORUM. This has brought about new winds of hope and change to the process of Caribbean cooperation and integration, he said. CARIFORUM, a subgroup of the African, Caribbean and Pacific Group of States (ACP), was created in October 1992 with the purpose of coordinating the financial assistance from the European Union to the Caribbean countries that signed the Lomé Convention. The assistance is provided through the EFDs the main source of European cooperation to the region. CARIFORUM is made up by the 15 member countries of CARICOM and Dominican Republic. The Pro Tempore Presidency of CARIFORUM will be taken over by Grenada as of 1 July. Central American Integration System holds summit Taken from the SICA Web site San Jose, 28 June.- The Heads of State and Government of the Central American Integration System (SICA) gathered in San José, Costa Rica, to hold their 41st Regular Summit, which addressed the main issues on the regional agenda. Participants in the Summit included the President of Costa Rica, Mrs. Laura Chinchilla whose country held the Pro Tempore Presidency of SICA until that day the President of El Salvador, Mauricio Funes Cartagena, the President of Guatemala, Otto Pérez Molina, the President of Honduras, Porfirio Lobo Sosa, the President of Panama, Ricardo Martinelli, the President of Dominican Republic, Danilo Medina, the Vice-President of Nicaragua, Omar Halleslevens, and the Ambassador of Belize, Alfredo Martínez. Relevant issues for the Central American integration process were considered: Report of the General Secretariat of SICA During the meeting, the Secretary General of SICA, Juan Daniel Alemán Gurdián, reported on the progress in fulfilling the presidential mandates related to the five priority pillars established with the relaunch of the integration process in Alemán referred to the issue of democratic security, saying that a US$ 20 million project on prevention of violence against women will be carried out soon within the framework of the Central American Security Strategy (ESCA). He also made remarks about the SICA-US dialogue on security. In the area of the economy, Alemán underscored the adhesion of Panama to Central American Economic Integration Secretariat (SIECA), the sustained progress in intra-regional trade, the support programmes to SMEs, the operation of the Payment Interconnection System, the financial stability of the region, and the achievements in tourist security. Regarding social integration, he highlighted the recent reactivation of the meeting of the Council of Labour Ministers, the savings made by the region through the joint purchase of medicines and the achievements in the field of institutionalization of the gender perspective within the system. On environmental issues, Alemán praised the increase in initiatives to use alternative energy sources in the region. He also welcomed the adoption of joint positions by the Ministers of Environment and Energy in the countries of SICA at various international forums. 10/

11 With respect to the agricultural area, he underscored the integrated approach of the region against the plague of rust affecting crops of coffee, as well as the progress achieved in the implementation of the Central American Strategy for Rural Territorial Development (ECADERT). He also referred to the institutional strengthening of SICA, explaining that the Executive Committee of SICA has been consolidated, that the Regional System of Information on Cooperation (SICOR) was launched, and that the first accounting exercise in this regard has been conducted. Finally, Alemán reiterated the need to continue efforts to achieve a rapprochement between the process of Central American integration and citizens. Adhesion of the Dominican Republic as a full member As part of the agreements reached during the Summit, the Heads of State and Government of SICA announced that as of 28 June Dominican Republic becomes the eighth full member of the system, in which it has participated since 2003 when it joined as associate state. Dominican President, Danilo Medina, was pleased with this decision saying that the Dominican people were proud of it. He also expressed his desire that his country continues to contribute to the already significant achievements of the system in its twenty years of existence. Handing over of the Pro Tempore Presidency The President of Costa Rica, Mrs. Laura Chinchilla, made official the transfer of the Pro Tempore Presidency of SICA to the President of Panama, Ricardo Martinelli, for the next six-month term. In doing so, President Chinchilla highlighted the progress made by the system during the months in which her country led the integration process, saying that integration involves more than merely border facilitation issues, which are important, but it rather entails rapprochement between peoples. In turn, President Martinelli and the rest of the leaders recognized the work carried out by Costa Rica during the past six months. Election of the new Secretary-General of SICA Salvadoran Minister of Foreign Affairs, Hugo Martínez, was elected by acclamation as new Secretary General of SICA and was officially presented by President Martinelli. In accepting the appointment, Martínez highlighted the work carried out by his predecessor and reiterated his commitment to the Tegucigalpa Protocol and the multidimension of the system. He pledged to work to strengthen ties with observer countries of the system and improve cooperation schemes during his tenure. Briefs Pacific Alliance holds Ministerial Summit Bogotá, 30 June (Pacific Alliance).- The Ministers of Trade and Foreign Affairs of Chile, Colombia, Mexico and Peru met on 29 and 30 June to review the progress of the negotiations within the Pacific Alliance, with the purpose of making progress towards the free movement of goods, services, capital and people. At the end of the meeting in Villa de Leyva, Colombia, the Alliance reported that, as a result of the negotiations of the technical groups, in the area of trade liberalization an agreement was reached for a 91.8% tariff relief for goods to be immediately implemented once the agreement enters into force, and the remaining reduction to achieve 100% tariff-free products will be made in gradual processes. On behalf of the Pro Tempore Presidency, Colombia s Trade Minister, Sergio Diaz Granados, said that the technical groups expect to conclude the current negotiations by 30 July. For that purpose, the countries agreed to hold a round of technical negotiations in Santiago de Chile to move ahead towards that goal. 11/

12 Day of Latin American and Caribbean Unity Panama City, 21 June (PARLATINO).- The Latin American Parliament (PARLATINO) is very pleased to call upon Congresses of its Member States to commemorate the Day of the Latin American and Caribbean Unity on 22 June. During its XII Regular Assembly, held in Buenos Aires, Argentina, in 1988, PARLATINO chose that date to mark the Day of the Latin American and Caribbean Unity, in remembrance of the Amphictyonic Congress of Panama, held from 22 June to 15 July 1826, as a result of Simón Bolívar s dream of a United America. Meetings on integration in July Thirty-fourth Meeting of the Conference of Heads of Government Port-of-Spain, Trinidad and Tobago (3-6) CARICOM Summit of Heads of State of MERCOSUR and Associate States Montevideo, Uruguay (12) MERCOSUR 12/