Bulletin on the Integration of Latin America and the Caribbean Edition N 181 December 2012 Contents PARLACEN promotes creation of Community of Central American Nations (1-2) XL Central American Summit concludes with four declarations (2) SUCRE-based trading operations rise (2-3) Agreements with Venezuela protocolized under ALADI (3) Bolivia will remain in the Andean Community (3) Bolivia joins MERCOSUR (3-4) CARICOM should use strength of integration movement (4) CARICOM Chairman praises Community s relations with Cuba (4-5) Briefs (5) - PARLATINO and Brazilian deputies to promote regional integration Meetings on integration in January (5) PARLACEN promotes creation of Community of Central American Nations Taken from the PARLACEN Web site Guatemala City, 10 December.- Developing a regional agenda among the various political and integration forums is the fundamental task we should promote at this time, said the President of the Central American Parliament (PARLACEN), Salvadoran Deputy Leonel Vásquez Búcaro, after concluding a working meeting with the President of the National Assembly of Nicaragua, René Núñez Téllez. During a working trip to Nicaragua, the President of the Central American integration body proposed the creation of the Community of Central American Nations, which will require the approval of laws, though respecting the sovereignty of each State. As part of the initiative for Central American peoples to unite into a single nation, the PARLACEN has suggested since October to turn the Gulf of Fonseca area into a trifinio where the three countries make reasonable use of natural resources. President Vázquez Búcaro promotes the creation of the Central American single passport and license to increase security in the region. The Presidents of the Member States of the Central American Integration System (SICA) are expected to resume the agenda and discuss the creation of the Community of Central American Nations. The issue was discussed with the President of the Central American Court of Justice, Magistrate Carlos Guerra Gallardo, in order to provide a legal framework based on the Community law, said the President of the PARLACEN, accompanied by the Vice-President on behalf of Nicaragua, Deputy Daniel Ortega Reyes. They also met with the President of the National Assembly of Nicaragua, with whom they agreed to establish a Central American single agenda to be discussed within the framework of the Forum of Presidents of Legislative Powers of Central America and the Caribbean. 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 199703CS183 - ISSN: 1317-1844 - Latin American and Caribbean Economic System (SELA) - Permanent Secretariat, Apartado Postal 17035, Caracas 1010-A, Venezuela - Visit SELA's Web site in Internet: www.sela.org - Send your comments or suggestions to SELA to: difusion@sela.org
President Vázquez Búcaro believes that Costa Rica will be forced to join the PARLACEN due to collective interests, and hopes that an observer is sent soon to the integration body to facilitate its prompt incorporation. XL Central American Summit concludes with four declarations Taken from SICA Web site Managua, 13 December.- The Meeting of Presidents of the Central American Integration System (SICA) is the supreme organ of the body, which establishes new guidelines or amends those in effect to guarantee the operation and modernization of the integration scheme. Its conduction requires an intense preparatory work with the participation of working groups made up of specialized and diplomatic public officials, who according to their status organize the documentation signed by the Presidents. Those documents, if applicable, are statements or guidelines to be implemented by the specialized bodies of the System. The General Secretariat coordinates and supports the respective efforts. The Summit is held ordinarily every six months, usually at the end of the period in which a presidential changeover approaches and the next full member country prepares to assume the Pro Tempore Presidency of SICA. One or more extraordinary Summits take place during a 6-month period, as the Presidents may wish or consider necessary. At this time, the Summit adopted four declarations: A joint declaration, which is the fundamental one; a special declaration supporting the grant by the United States, observer member of SICA, of the TPS (Temporary Protection Status) to unprotected Guatemalan citizens, who work and make a great contribution to the northern nation; another declaration expressing hopes for the recovery of President Hugo Chávez Frías and support to the Venezuelan people; and a declaration acknowledging the efforts by the President of Honduras to promote the institutionalization of democracy in his country, including the independence of powers of the State. The Joint Declaration refers to the need for regional food and nutrition security; recognizes the full force of the Central American Security Strategy; welcomes the incorporation of Panama to the Subsystem of the Economic Integration and the follow-up efforts to materialize it; refers to some issues such as HIV-AIDS and other health-related problems of high incidence in the SICA area. The Council of Ministers of Health of Central America (COMISCA) has committed itself to solving these problems. The document also promotes a Development Agenda to prioritize the generation of productive and decent employment. It also deals with environmental issues, the joint participation of SICA countries at COP 18 and the negative impact of climate change, thus suggesting the capitalization of the Central American Risk Mitigation Fund. In addition, and most importantly, it instructs the Foreign Ministers to conduct a thorough review of all coordination mechanisms of SICA and to submit, within five months at the latest, the required reforms to facilitate the efficiency and transparency of the System, as well as the equitable participation of all members in executive positions. Finally, the Joint Declaration congratulates the presidents of El Salvador, Honduras and Nicaragua for the successful results of the recent meeting to promote the development of the Gulf of Fonseca. In addition, it refers to the incorporation of Colombia, Ecuador, Haiti and Uruguay as SICA regional observers and the United Kingdom and the Holy See as observers outside the region by decision of the XL Central American Summit. SUCRE-based trading operations rise Published by CorreodelOrinoco.gob.ve, Venezuela Caracas, 18 December.- Based on 2,135 economic operations carried out through the Regional Clearance Unitary System (SUCRE), the commercial exchange among Member States of the Bolivarian Alliance for the Peoples of Our America - People's Trade Agreement (ALBA-TCP) rose from 11% to 17% in the past years, said the Executive Secretary of the regional group, Rodolfo Sanz. The official stressed that SUCRE-based transactions amounted to US$ 700 million, and commercial operations conducted through PETROCARIBE, which are based on exchange, cooperation and complementarity, also contributed to the region s economic growth. In an interview broadcast by local television, he said that as regards energy, PETROCARIBE has traded oil for more than US$ 12 billion in recent years, taking over Shell s control on the distribution of oil in all Caribbean countries. Regarding the share of the private industry within the ALBA- TCP, Sanz considered it of great importance since it has promoted market expansion. The private sector s share within the SUCRE, and thus within the ALBA-TCP, is fundamental. This sector, contrary to what is said, has held a share close to 91% in economic transactions and business operations within the SUCRE, he explained. ALBA-TCP, a mechanism made up of Bolivia, Cuba, Nicaragua, the Commonwealth of Dominica, Antigua and Barbuda, Ecuador, Saint Vincent and the Grenadines, and Venezuela, has also aroused interest in countries of Central Europe and Asia. 2/
The Executive Secretary said that the commercial exchange based on SUCRE as a mechanism to replace dollar s hegemony has attracted the attention of economies such as Russia, Belarus and China, which have analyzed the possibility of establishing trading relations based on their national currencies. In addition, Sanz informed that the XII Summit of the ALBA- TCP is scheduled to be held during the first quarter of 2013. In this event, participants will discuss new strategies to advance in the creation of economic and productive areas in Member States of the Alliance Agreements with Venezuela protocolized under ALADI Taken from ALADI Web site Montevideo, 27 December.- Agreements signed on 26 December 2012 by Argentina, Brazil and Uruguay with the Bolivarian Republic of Venezuela were protocolized under the Latin American Integration Association (ALADI), in accordance with provisions of Venezuela s Adhesion to MERCOSUR Protocol. The Secretary-General of ALADI, Carlos Álvarez, stressed the importance of the agreements and the fact that they were reached using the instruments provided for in the 1980 Treaty of Montevideo, which established ALADI, thus deepening the relationship between Venezuela and member countries of MERCOSUR. The parties signed Economic Complementation Agreements (ACE), which grant reciprocal tariff preferences, except for sugar, oil and the automotive sector. According to agreements signed separately by Argentina and Brazil with Venezuela (ACE 68 and ACE 69, respectively), both countries grant Venezuela, as from 1 January 2013, 100 percent tariff preferences for products of Venezuelan origin. For its part, Venezuela will take the same action with respect to the two nations as from 1 January 2014, establishing total liberalization schedules for some products that will become effective in 2018. In addition, Uruguay and Venezuela signed an Additional Protocol to ACE 63, currently in force, under which the tariff liberalization shall be totally and immediately carried out. As for the automotive sector, as long as no specific treatment is defined, provisions set forth in ACE 59 are applied with the level of preferences in force on 31 December 2012. Both parties agreed to develop a trading system for this sector, which will establish the universe of products covered and the applicable rules of origin. These agreements will be, in turn, replaced by the Protocol that shall formalize the adhesion of the Bolivarian Republic of Venezuela to the Economic Complementation Agreement N 18, also protocolized under ALADI, which regulates trade relations within MERCOSUR. Bolivia will remain in the Andean Community Taken from the Andean Community Web site Lima, 1 December.- Bolivia's Foreign Minister, David Choquehuanca, met with the Secretary-General of the Andean Community (CAN), Adalid Contreras Baspineiro, to ratify the determination of his country to remain in this organization and join MERCOSUR as a full member. The meeting was held at the headquarters of the Andean organization in Lima. The Foreign Minister explained that Bolivia received an invitation from a high-level delegation to become a full member of MERCOSUR. We have received this invitation and we have expressed our interest in being part of MERCOSUR without leaving the Andean Community, he said. Mr. Coquehuanca added that once Bolivia s decision to be part of MERCOSUR is formalized, a negotiation process will begin to deal with Bolivian sensitivities and to find a way that the incorporation of this country to MERCOSUR does not imply its exit from the Andean Community. This negotiation process takes 270 days. As regards impacts of Bolivia s accession to MERCOSUR, he said that the negotiation process will enable stakeholders to identify the advantages and disadvantages and to know the effects of this incorporation on Bolivia and the Andean Community as a whole. With respect to potential conflicts caused by its double membership to the Andean Community and MERCOSUR, the Foreign Minister stressed that a mechanism will be found to solve them, as it occurred in the past. In fact, some members of the Andean Community requested such a mechanism to sign agreements with other countries. Bolivia joins MERCOSUR Published by ElEconomista.com.mx, Mexico Brasilia, 9 December.- Bolivia took the first major step towards becoming the sixth full member of MERCOSUR by signing the Protocol of Accession to this institution, made up of Argentina, Brazil, Uruguay, Venezuela and Paraguay, the latter of which was suspended. In the final Declaration of the Summit in Brasilia, participants expressed great satisfaction with the signing of the Protocol of Accession of the Plurinational State of Bolivia to MERCOSUR, which contributes to the entire process of South American integration. 3/
According to the Protocol, Bolivia becomes a member with voice at the summits of MERCOSUR, and will have the right to vote once the accession process is completed. The Bolivian President, Evo Morales, was the first Head of State to leave the Itamaraty Palace, headquarters of the Brazilian Foreign Ministry, where the Summit took place and ended without statements to the press. Neither Morales nor the Ecuadorian President, Rafael Correa, stayed for a lunch offered by the Brazilian President, Dilma Rousseff, after the meeting. According to Bolivian sources, in his speech, Morales ratified his decision to move towards full membership of MERCOSUR, while raising the need that economic asymmetries between his country and the other members of the southern integration scheme are dealt with and reduced. CARICOM should use strength of integration movement Taken from CARICOM Web site Georgetown, 10 December.- Member States of the Caribbean Community (CARICOM) need to fully utilize the strength of the integration movement in light of the current global challenges. This was the charge delivered by Ambassador Lolita Applewhaite, Deputy Secretary-General of CARICOM, to the Thirty-Fifth Meeting of the Council for Trade and Economic Development (COTED). In brief remarks at the start of the Meeting at the Princess International Hotel at Providence, the Deputy Secretary- General pointed out that the Community was not immune from the global challenges that continued to beset both developed and developing countries. Although we have proven time and time again that Caribbean peoples are resilient, and will therefore continue to persevere, it is in such times that we need to utilize the strength of our integration movement to its fullest extent. In this regard, it is vital that while as individual sovereign States we would be preoccupied with the responsibilities within our national borders, it would also be to our advantage to look to our regional arrangements as supportive even when they seem to add additional responsibilities. This could perhaps be seen as an investment for increased benefits, she told Trade Ministers and other delegates at the meeting. Acknowledging COTED s critical role in positioning the Member States of the Community to weather this turbulent period, Ambassador Applewhaite said compromise and an appreciation for the big picture were important to ensure equity within the trade and economic arrangements of the Community. This is the essence of regional integration, she pointed out. Among the key items on the meeting s agenda was a focus on boosting the ability of the Least Developed Countries (LDCs) to fully enjoy the benefits of the CARICOM Single Market and Economy (CSME). In this regard, Ministers deliberated on the factors and circumstances that restrict the full integration of Belize, Haiti and the Organization of Eastern Caribbean States (OECS) into the CSME. The discussions were informed by a Report on a Consultancy that was undertaken to address the issue. Emphasis were also placed on external trade matters, including the threat facing the CARICOM s export of rum to the United States, as well as progress being made on the CARICOM-Canada Trade and Development Agreement. Ministers also decided on the way forward with respect to easing the burden of Member States in light of the persistent rising cost of fuel and food which is anticipated to continue into 2013. In 2008, the Region had singled out the Common External Tariff (CET) as the means through which relief could have been provided in the short-term. Honourable Arnold J. Nicholson, Minister of Foreign Affairs and Foreign Trade of Jamaica, was chairman of the meeting. CARICOM Chairman praises Community s relations with Cuba Taken from CARICOM Web site Georgetown, 10 December.- The Chairman of the Caribbean Community (CARICOM), Dr the Honourable Kenny D Anthony, has lauded the relations between the Community and Cuba. In a message marking the 40th Anniversary of the establishment of diplomatic relations between Member States of the Community and Cuba, Dr Anthony said the bold and historic step taken by Barbados, Guyana, Jamaica and Trinidad and Tobago in 1972 initiated a journey that had taken the two sides along the path of a rewarding partnership with mutual benefits. The Member States of the Caribbean Community have, since that historic day, maintained their unflinching support for the Republic of Cuba in various international forumsa and take great pride in being pioneers in this hemisphere with respect to the recognition of Cuba as an integral part of our vibrant and diverse Caribbean region and our hemisphere, the Chairman said. The benefits of the co-operation, Dr Anthony said, redounded throughout the Community whether it was through the provision by Cuba of scholarships or technical 4/
assistance in the education, health, sport and cultural sectors. These initiatives have had a positive impact on the ground in our Member States and have brought our countries even closer, he added. The CARICOM Chairman said that what was most striking about the solidarity displayed by Cuba with CARICOM was the quantum and diversity of the assistance that Cuba provided despite the constraints placed on its own economic development by the United States economic, commercial and financial embargo as well as the accompanying extraterritorial measures, which CARICOM and the overwhelming majority of the international community repudiated. Briefs PARLATINO and Brazilian deputies to promote regional integration Panama City, 14 December (PARLATINO).- The Latin American Parliament (PARLATINO) and the Chamber of Deputies in Brazil will take a series of joint actions to promote regional integration, parliamentary sources in Panama City said. The announcement was made by the President of the Chamber of Deputies of the Federative Republic of Brazil, Marco Maia, in a visit to the PARLATINO to learn about the progress in the construction of the building that will house the permanent headquarters of the Latin American Parliament at Amador, Panama City. Around 70% of the construction work was completed. We want to contribute to this important work for the integration of Latin American peoples, expressed the Brazilian Deputy, referring to the project that is built with an investment of over US$ 12.5 million and has turned Panama City into the capital of the hemispheric debate. At the meeting, Deputy Maia, accompanied by the Ambassador of Brazil in Panama, Adalnio Senna Ganem, had the opportunity to exchange views with the President of PARLATINO, Elías Castillo, and the Executive Secretary of the body, Humberto Peláez, about socio-political and economic issues affecting the region. For his part, Deputy Castillo noted that these meetings are of vital importance to strengthen the existing relations between parliaments and the body, composed of the legislative chambers and senates of 23 Latin American countries. Meetings on integration in January First CELAC-European Union Summit Santiago, Chile (26 and 27) First Summit of Heads of State of CELAC Santiago, Chile (28) 5/