Patriota defends Venezuela’s admission as a full member and the suspension of Paraguay from Mercosur

The Brazilian Foreign Minister, Antonio Patriota, continues to defend Venezuela’s entry in Mercosur and the suspension of Paraguay from the bloc.

Last Wednesday (11), Patriota appeared in the Senate’s Committee for Foreign Relations and responded to criticism from parliamentarians who are contrary to the suspension of Paraguay and against the support given to Venezuela by Brazil, Uruguay and Argentina.

The minister reiterated that both decisions were adopted by common agreement between the three countries during the recent summit meeting, held in the Argentine city of Mendoza. “Paraguay will only be able to rejoin the bloc when it restores full democratic order.”

About Venezuela’s admission as a full member, which was strongly opposed by the Paraguayan Congress before the country was suspended, Patriota insisted that the country has a “strategic” economic and political importance to Mercosur.

“With Venezuela’s admission as a full member, Mercosur will extend itself from Patagonia to the Caribbean” said the minister, who highlighted Venezuela’s potential in the energy sector and its potential of “strengthening the networks of trade and investment” in the region.

According to Patriota, both the suspension of Paraguay and Venezuela’s entry were “difficult, but matured decisions, carefully adopted as to not affect the Paraguayan people” and “as a response to an unacceptable situation.”

The admission of Venezuela as a full member of Mercosur will be formalized at a special meeting to be held on June 31^st, in Rio de Janeiro.

Paraguay: Country files requirement against suspension from Mercosur

The government of Paraguay filed a requirement last week in the Permanent Court of Mercosur to restore its rights in the bloc, which were temporarily suspended, and also presented a complaint opposing the inclusion of Venezuela as a full member.

The government’s top legal officials presented the requirement to the Permanent Court, whose headquarter is located in Asuncion, as announced last week by the Minister of Foreign Affairs, José Félix Fernández Estigarribia.

The complaint included a protest ​​”against the suspension of Paraguay from the bloc and the declaration by which Venezuela was incorporated as a full member, both decisions contrary to the Treaty of Asuncion, the Protocol of Ouro Preto and the general rules of international law,” according to lawyer, Ernesto Velázquez.

Velazquez, who is part of the government’s legal team, ensured that Paraguay believes that “the aforementioned provisions are null and void” and that “they cannot have legal application and effectiveness.” Moreover, the lawyer points out that the government of Federico Franco, the rightful president since the former head of state, Fernando Lugo was removed by the Senate on June 22, demands the return of Paraguay’s rights within the block.

Velazquez insisted that Mercosur has violated its own resolutions like the “principle of legal equality between states” and “the principle of nonintervention.” He detailed the process, in a document of about 60 pages. All the judges of the Permanent Court, as well as the governments of member states have a deadline of 60 to 90 days to decide on the matter.

Uruguay: Mujica reiterates support to the inclusion of Venezuela in Mercosur

The president of Uruguay, Jose Mujica, ratified the decision of his country to support the inclusion of Venezuela in Mercosur after the bloc approved the suspension of Paraguay from the group.

According to press reports, Mujica said that “while it is true that the proposal was elaborated in the first place by Brazil, we three agree (the presidents of Argentina, Brazil and Uruguay), about Venezuela’s entry in the bloc”. The representative of Uruguay said “the political will involved in the case, far exceeds the possible legal impediments regarding the matter”.

Paraguay was suspended from the bloc after Fernando Lugo was deposed. The suspension led to the approval of Venezuela’s entry in the free-trade agreement. Before the events involving Lugo, Venezuela’s entry in Mercosur faced strong opposition by the Paraguayan Senate, while the lawmakers of Argentina, Brazil and Uruguay have long supported Venezuelan admission to the group.

Mercosur was formed in 1991 after signing of the so-called Treaty of Asuncion between Argentina, Brazil, Paraguay and Uruguay.

Brazil: Presidency denies pressure on Venezuela’s entry in Mercosur

The special advisor for international affairs of the Presidency, Marco Aurelio Garcia, denied that Brazil has pressed Mercosur countries to force Venezuela’s entry as a permanent member on the bloc.

In an interview for radio “El Espectador”, however, the Uruguayan foreign minister, Luis Almagro, said that “nothing is decided” and that “the country has not given the last word” on the whole process. According to Almagro, the intervention of President Rousseff was “decisive” for Venezuela’s entry.

Almagro’s statements surprised the Brazilian Presidential Palace and made Marco Aurelio personally call the Uruguayan President, Jose Mujica, to verify the story.

Marco Aurelio Garcia explained “the decision to include Venezuela on July 31^st was part of a broad understanding that included President Mujica. “I want to make clear that on our part there was no imposition, no pressure. This is not the style of President Dilma or that of the Brazilian foreign policy”.

Garcia said that Venezuela withdrew from economic sanctions it had unilaterally taken against Paraguay to suspend oil supply to its Latin American neighbor. He denied, however, that the Chavez’s retreat was a condition to the entry of Venezuela in the bloc.

Hugo Chavez confirms his intention to run for reelection

Venezuelan President Hugo Chavez assured that he will protocol his candidacy to to run for reelection within the required deadline set by the country’s electoral authority, reducing doubts about his ability to meet the challenges of the election campaign while fighting cancer at the same time.

After 11 days without appearing in public since returning from medical treatment in Cuba, Chavez coordinated a government meeting in the Miraflores Palace, broadcasted on national television.

The Venezuelan president, who appeared on television only twice since mid-April, said his candidacy will be made official between June 1^st to 11^th, the deadline set by the National Electoral Council (CNE).

Chavez turned his criticism to the opposition candidate, Henrique Capriles, accusing him of trying to emulate the socialist model to climb in the polls.

While Capriles held a series of house-to-home visits in recent months, the command of Chavez’s campaign has made frequent political acts, regardless of the absence of Venezuelan President on the account of his radiotherapy treatment in Cuba.

Meanwhile, polls show Chavez is ahead of Capriles. The candidate of the Mesa da Unidade Democrática (MUD), said he will formalize his candidacy on June 1^st

THE SIGNIFICANCE OF VENEZUELA’S ADMISSION TO MERCOSUR

The decision of the Senate Foreign Relations Commission to approve Venezuela’s admission to Mercosur has brought the South American country very close to becoming a full member of the regional bloc. With the project having now passed through the Chamber, only Senate endorsement is required for Brazil to approve Venezuela’s membership, which should take place this week. Venezuela’s admission to the bloc has already been approved by the Argentine and Uruguayan Congresses. Paraguay is awaiting the Brazilian decision before voting on the membership protocol.

Despite the economic benefit of Venezuela’s presence in Mercosur for Brazilian companies, the personal style of the Venezuelan President, Hugo Chavez, raises cause for concern in the member countries.

Chavez’s political personality is the opposite of Lula’s, which stresses moderation. There are therefore fears that Chavez’s excessive nationalism will bring further challenges to Mercosur.

Venezuela’s conflicts with Colombia, for example, will demand a stance from Brazil, Argentina, Uruguay and Paraguay as soon as Chavez’s country becomes a full member of the regional bloc. There are also fears that Venezuela may prejudice negotiations for establishing a free trade accord between Mercosur and the European Union.

Supporters of Venezuela’s entry to the bloc believe in turn that Venezuelan political circumstances cannot be allowed to impede the entry of another country into Mercosur. Furthermore, they believe that leaving Hugo Chavez isolated would be much worse. Despite these arguments it is unlikely that Chavez will not use Mercosur as yet another political platform, as he has done with Alba (The Bolivarian Alliance for the Americas) and Unasur (The Union of South American Nations).

In Venezuela, the country’s admission to Mercosur is seen under a positive light. Even the mayor of Caracas, Antonio Ledezma, supports membership. The opposition expects that with the country’s admission to the bloc there will be greater regional pressure for the Chavez government to comply with democratic conditions. Although that pressure will initially be somewhat limited, it is better than allowing the Venezuelan president to act independently.

Despite these political elements, the more important impact of Venezuela’s entry into Mercosur will be economic, especially for Brazil. Last year’s Brazil’s trade balance with Venezuela amounted to US$ 5.7 billion, with a US$ 4.6 billion surplus for Brazil. Since 2007, Brazil has been the country’s second trading partner, behind only the USA, the main consumer of Venezuelan oil. Venezuela imports 70% of what it consumes, mostly from Colombia and the United States. It is therefore possible that Venezuela’s participation in Mercosur will strengthen the bloc’s GDP. It will also extend the bloc to northern South America, with influence in the Caribbean region and benefits for all States in northern Brazil.

Despite this optimism, Venezuela’s interests in Mercosur will be different from those of Brazil, Argentina, Uruguay and Paraguay. While those countries expect Venezuela to contribute economically to the bloc, Hugo Chavez must be relying on Mercosur to further strengthen his political influence in the region. These contradictory objectives should lead to Venezuela’s incorporation into Mercosur making little contribution to strengthening the bloc in the short term.

Several analysts and politicians believe that politicization of the bloc is the great negative aspect that will come with Venezuela’s admission. Despite Mercosur being relatively moribund, achieving much less than had been hoped when it was formed, it is still a commercial bloc. And although weak, Mercosur continues to have a commercial aspect, which prevents certain political disputes from being brought within its ambit. One recent example was the situation involving the Itaipu Plant. In this episode the disagreement between Brazil and Paraguay, together with its resolution – which often displayed aspects that were more political than financial – was confined to dialogue between the two.

Chavez has shown a history of politicizing every area. One clear recent example involves relations with Colombia. This long-term trading partnership with Venezuela was gradually set aside through the personal – and above all political – decisions of Chavez. The aim of exchanging food supply from Colombia with Brazilian and Argentine products is, in a way, retaliation against the Alvaro Uribe government for its political disagreement with Chavez. There are clearly in this case “two weights, two measures”. As soon as there is a commercial retaliation against a neighbor due to a politically opposing position (in that case North American bases in Colombia), there is an intervention in the affairs of another country. Foreign intervention is something totally rejected by Chavez.

There is a risk that purely commercial issues become the target of “gentle blackmail” for political will to prevail. It is worth recalling that through its president, Fernando Lugo, Paraguay has an “almost carnal” relationship with Venezuela. Just because the Paraguayan parliament has not yet approved Venezuela’s admission does not mean that Paraguay does not support Chavez. In Argentina, the Kirchners have shown that they “dance according to the tune”, and in this case it is Chavez who is closest to the couple’s hearts.

Within this scenario, should the bloc become politicized, it is possible that Paraguay, Venezuela and Argentina will always be united. Brazil might join the group or be always isolated with the tiny Uruguay. Another very interesting line of argument says that Venezuela is not Chavez and for that reason the country’s admission will be beneficial for the bloc and for Brazil. Except they have forgotten to tell Chavez, who has created a system in which State and government are fused together around his image. Chavez today represents the Venezuelan state, the Venezuelan government, the Venezuelan people (since he controls the National Assembly), the Armed Forces (since his personal forces are greater than the Army) and the Venezuelan press. There is no way of dealing with Venezuelan institutions without them being 100% infected by the personal wishes of Hugo Chavez.

Yet Venezuela is infinitely greater than Chavez. Its people and its history mean that the country will always be most welcome in any bloc of which Brazil is a member. However, this fusion between an individual who acts according to his mood and antiquated ideology and a country and its institutions brings no benefits to a bloc of which Brazil is a member. Brazil finds itself in interesting international ascendancy, but insists in believing that it can add value with Venezuela and Iran, for example.

Finally, there are those who just look at the figures. Businesspeople who deal directly with Venezuela are more than happy with its admission to Mercosur.  Yet one should not just look at the figures to justify admission of a country that violates human rights and freedom of the press. Does balance of trade have more value than the basic foundations of democracy? Should arithmetic ignore violations of democracy in another country? Some say yes, others say no. I do not believe that trade benefits are enough to justify disruption to day-to-day foreign policy and Brazilian trade policy. I believe that Brazil, within its stance towards global politics, should uphold certain basic values of democracy above a growth in balance of trade with a highly unstable country with no firm institutions.

BRASILIA: Entrance of Venezuela in Mercosur receives ambassador’s support

Brasil’s embassador in Caracas, Antonio José Ferreira Simões, was mobilizing in favor to the addition of Venezuela to Mercosur. According to the Senate agency, he visited several senators last week to show the importance (especially economical importance to Brasil) of the entrance of a new partner in the economic block, in which Argentina, Paraguay and Uruguay are already part of.

Simões stayed in contact with the following parliamentarians: the senate’s president, José Sarney; CRE’S (Commision of Foreign Affairs and National Defense) president, senator Eduardo Azeredo (PSDB-MG); and the rest of the senators that are part of the commission.

The diplomat informed all the parliamentarians about the numbers of bilateral commerce: i) in the last 10 years, the exchanges between the two countries increased 850%, reaching a total annual of US$ 6 billion; ii) From that total, around US$ 5.3 billions are from Brazilian exports and only US$ .7 billions are from imports, forming the highest surplus of the Brazilian trade balance.

“Mercosur needs a new impulse and this impulse could be the entrance of Venezuela”, emphasized the embassador. In his opinion, Venezuela already became the first world-wide market of Brazil for powder milk and the second market for Brazilian meat.

Venezuela: Entrepreneurs criticize package anti crisis

The “Fedecamaras” (Federation of Entrepreneurial Chambers) understands that the economic plan announced by the president Hugo Chávez underestimated the crisis. The entity promises to present its own plan in the next 30 days.

For the entity’s president, José González, the effects of the world-wide economical crisis in Venezuela can only be solved by increasing the internal production. In its agreement, the measures announced by Chavez not only do they not solve the problems caused by the crisis, but they also put in danger the citizen’s economy.

Gonzalez positioned himself against the increment of 20% in minimum wage for considering it below expectations. He asked the entrepreneurs to provide a higher readjustment. In his evaluation, the inflation of 2009 will be of 35%. However, the Venezuelan government projects an inflationary index of 20%, les than 30.9% from last year.

Because of the inconsistency of the anti-crisis measures announced by Chávez, “Fedecamaras” will publish in 30 days an alternative plan to fight poverty and to improve Venezuelan’s quality of life.

Another criticized point by Gonzalez is the treaties of international cooperation, where the country offers economical aid to the less favored countries.

VENEZUELA: Manuel Rosales does not discard competing in 2012

In the interview granted to the Spanish newspaper “El Mundo”, the mayor of Maracaibo, Manuel Rosales, left open the possibility of competing in the presidential elections of 2012, year in whichVenezuela’s president, Hugo Chávez, will try a new mandate. According to Efe agency “if the conditions were favorable it would be an honor to displace Chavez from his presidency”.

Questioning about the opposition’s options to defy Chavez’s hegemonic pretensions, Rosales said “there are many capable names”.

In his evaluation, Venezuela’s Chief of State has left victorious for the great volume of resources that came from petroleum exportations that finance social programs for families with extreme limitations from an economical and social point of view, manipulating them to vote for their project.

Hugo Chavez solidifies his “Socialism of the 21st Century”

The victory of “yes” over the “no” by 54% against 45% in the referendum on the amendment of unlimited re-election shows the consolidation of the so called “Socialism of the 21st century.”

Unlike 2007, when the same proposal was defeated, the government managed to control the agenda of the election. Using the popularity of Hugo Chávez, the allies of the president managed to turn the debate around the possible chaos that plunged the country if he had to leave power in 2012. A well-designed strategy was added to mobilize the United Socialist Party of Venezuela (PSUV), especially in the poorest regions of the country, left the opposition with little to do. 

 
From now on, Venezuela tends to move toward socialism. It is no coincidence that shortly after the confirmation of victory, Chávez said: “Today begins the third cycle of history, from 2009 to 2019. Open the door to the future to continue traveling the path of dignity and this path has no other name is socialism. “